Schlumberger Slumps 6% In Two Days As Technicals Signal Bearish Momentum

Schlumberger (SLB) declined 3.18% to close at $35.07 on July 15, 2025, extending its two-day loss to 6.00%. This bearish momentum provides context for our technical analysis.
Candlestick Theory
Recent sessions show significant bearish signals. The July 14-15 period formed two consecutive long red candles, confirming rejection near the $37.31 resistance established on July 11. The July 11 candle’s long upper wick (high: $38.15, close: $37.31) indicates selling pressure at higher levels. Key support emerges at $34.92 (June 9–12 consolidation zone), while resistance converges at $37.30–$37.50. A bearish engulfing pattern on July 14–15 suggests near-term downside continuation potential.
Moving Average Theory
The 50-day moving average (approx. $36.80) crossed below the 100-day MA (approx. $38.20) in late June, confirming a bearish medium-term shift. Current price ($35.07) trades below all key MAs, with the 200-day MA ($39.50) acting as formidable resistance. The accelerating separation below declining shorter-term MAs may signal entrenched bearish momentum, though oversold rebound potential near the $34.50–$34.90 support area remains plausible.
MACD & KDJ Indicators
The MACD histogram resides in negative territory, with the signal line maintaining a bearish crossover since mid-June. However, oversold divergence is emerging as price made lower lows while the MACD flattened in early July. The KDJ oscillator (K: 28, D: 32, J: 20) approaches oversold thresholds (<30), though no bullish crossover is yet evident. While both indicators lack reversal confirmation, MACD’s divergence warns against aggressive downside bets.
Bollinger Bands
Bollinger Band width expanded sharply during the July 14–15 sell-off, signaling volatility surge. Price breached the lower band ($35.40) intraday on July 15 before closing near it—a possible exhaustion signal. The bands’ recent contraction phase in late June preceded this directional move, supporting their role as volatility predictors. A mean-reversion bounce toward the 20-day midline ($36.50) appears increasingly probable.
Volume-Price Relationship
The two-day 6% decline occurred on rising volume (July 14: 12.7M shares; July 15: 17.3M), validating bearish conviction. Conversely, the July 8 rally to $36.54 featured 13.5M shares—above the 30-day average—highlighting volume confirmation of directional moves. Current distribution patterns outweigh accumulation signals, though climactic selling volume on July 15 may foreshadow short-term exhaustion.
Relative Strength Index (RSI)
The 14-day RSI (35) hovers near oversold territory but avoids extreme readings (<30). Notably, it diverged positively against price in June–July as RSI formed a shallower trough than prices. While not yet generating a buy signal, this divergence suggests weakening downward momentum. Traders should monitor for RSI stabilization above 40 to signal potential basing.
Fibonacci Retracement
Using the April 9 peak ($35.98) and June 26 trough ($33.83), key retracements are: 38.2% ($34.55), 50% ($34.91), and 61.8% ($35.26). Recent rejection at the 61.8% level reinforces its resistance significance. A breakdown below the 50% level ($34.91) would expose the $34.25–$34.50 support confluence (78.6% retracement + psychological level), while recovery above $35.26 would shift near-term bias neutral.
Confluence and Divergence Observations
Confluence exists at $34.90–$35.00 (Fibonacci 50%, Bollinger lower band, and horizontal support), making it a critical defensive zone for bulls. Bearish consensus dominates across indicators near-term, but notable divergences (MACD, RSI) and oversold readings (KDJ, Bollinger bands) suggest downside exhaustion risks. Should volume dry up near $34.90–$35.00 with bullish candle reversal, a technical rebound toward $36.00–$36.50 appears increasingly probable despite the prevailing downtrend.