Schlumberger Slumps 3.9% To 2025 Low Amid Bearish Technicals

Schlumberger (SLB) declined 3.89% in the most recent session, closing at $33.32 after trading between $33.175 and $35.11 on elevated volume of 35.3 million shares. This sharp drop underscores prevailing bearish momentum in the near term. The following multi-faceted technical assessment examines key dynamics shaping the stock's trajectory.
Candlestick Theory
Recent price action reveals a pronounced bearish structure. The session on 2025-07-18 formed a long red candle penetrating previous support, confirming distribution. This follows a shooting star pattern on 2025-07-16 (high: $35.19, close: $34.59), which signaled exhaustion after a minor rebound from the $33.18 low on 2025-06-25. Critical resistance now consolidates between $36.50-$37.50, a zone that contains multiple failed breakout attempts since April 2025. Support appears fragile near $33.00 - the year's lowest close. Breach below this level may target the $31.50 trough established on 2025-04-09.
Moving Average Theory
The moving average configuration reflects entrenched bearish momentum. Current price trades substantially below all key moving averages - the 50-day (~$36.80), 100-day (~$38.20), and 200-day (~$39.40). Notably, the 50-day SMA crossed below the 100-day and 200-day SMAs in late May 2025, while the 100-day completed a death cross below the 200-day in early July. This alignment indicates a fully established downtrend across all measured timeframes. The widening distance between price and these averages suggests no immediate technical support from this indicator group.
MACD & KDJ Indicators
Momentum oscillators corroborate bearish conditions without definitive reversal signals. The MACD histogram remains negative territory after a bearish crossover occurred in early July. While the histogram shows minor convergence as of 2025-07-18 (suggesting potential slowing momentum), both lines linger below the zero line. The KDJ indicator depicts similar weakness: The %K (11.2) and %D (16.8) languish deeply in oversold territory (<20) but without bullish crossover. These readings suggest sustained downside pressure, though extended positioning heightens reversal probability at major support levels.
Bollinger Bands
Volatility remains elevated with bearish bias. Recent band expansion began in mid-July as prices breached the lower band on 2025-07-17 and 2025-07-18, confirming directional bearishness. The price currently hugs the lower band ($32.50), a position typically signaling continued downside momentum. The 20-day moving average midpoint ($35.20) now acts as resistance. Until price recaptures the midline, the path of least resistance remains downward.
Volume-Price Relationship
Volume patterns validate bearish conviction. Distribution days have dominated since early July, with down days exhibiting significantly higher volume than up days – most notably the 35.3 million shares traded during the recent 3.89% decline. Volume surges accompanied both the breakdown below $36.50 on 2025-07-15 (-3.18% on 17.4M shares) and the $34.50 breach on 2025-07-17 (-1.37% on 19.8M shares). This institutional selling pressure raises sustainability concerns for any nascent rebounds lacking commensurate volume support.
Relative Strength Index (RSI)
The 14-day RSI reading of 35.9 indicates borderline oversold conditions but remains above the critical 30 threshold. Current positioning mirrors levels seen during the June 2025 low near $33.00. However, RSI has not yet established bullish divergence relative to price, which closed at a fresh YTD low. Historical observation shows SLB can sustain readings between 30-40 for prolonged periods during strong downtrends, suggesting oversold warnings may be premature without confirmation from other indicators.
Fibonacci Retracement
Fibonacci analysis highlights critical thresholds. Drawing from the high of $50.94 (2024-07-19) to the low of $31.11 (2025-04-09), key retracement levels emerge: The 61.8% level ($38.30) contained the April-May 2025 rebound, while the $33.12 level (76.4% retracement) aligns precisely with recent support near $33.00. With price testing this significant Fibonacci support, its failure could trigger technical selling toward the $31.11 low. Conversely, reversal from this zone offers a higher probability long-entry level for contrarian buyers.
Confluence and Divergence
Significant confluence emerges at $33.00-$33.50, combining the YTD closing low, psychological support, and critical 76.4% Fibonacci retracement. Bearish confirmation exists across volume, moving averages, and Bollinger Band positioning. A critical divergence manifests in the KDJ indicator maintaining oversold levels while price establishes new lows - a potential early warning of waning bearish momentum that nevertheless requires price confirmation to validate. Probabilistically, the technical structure currently favors downside continuation below $33.00 unless a decisive reversal candle emerges near this support with substantial volume backing.