SLB Shares Plunge 8.3% as Death Cross Signals Prolonged Downtrend

SLB's Technical Analysis
Candlestick Theory
SLB's recent price action displays a pronounced downtrend, marked by four consecutive bearish candles culminating in a -8.30% decline. The latest session (2025-10-10) formed a long red candle closing at the low of $31.72, signaling strong selling pressure. Key resistance now emerges near $34.55 (recent consolidation zone), while critical support rests at the April 2025 swing low of $31.88. A sustained break below $31.72 may accelerate declines.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages exhibit a bearish alignment, with all three sloping downward and the price trading well below them. The 50-day MA (approximately $35.95) crossed below the 200-day MA (approximately $37.20) in August 2025, confirming a long-term downtrend. This "death cross" structure reinforces resistance near $35.00–$36.00, suggesting persistent downward momentum.
MACD & KDJ Indicators
The MACD histogram remains deep in negative territory (-1.25), with both signal and MACD lines declining sharply—a bearish momentum confirmation. Meanwhile, the KDJ oscillator (settings: 14,3,3) shows the K-line at 18 and D-line at 25, both deeply oversold but lacking bullish convergence. While oversold conditions exist, the absence of bullish crossovers suggests limited reversal potential.
Bollinger Bands
Bollinger Bands (20-period) are expanding after a prolonged contraction, reflecting rising volatility. The price has breached the lower band ($32.10) with conviction, typically signaling an oversold extreme. However, the band expansion lacks a clear bullish reversal signal, indicating potential continuation pressure. A reversion toward the midline ($34.80) would likely face selling pressure.
Volume-Price Relationship
Volume surged during the four-day decline, peaking at 15.6M shares on 2025-10-10—well above the 30-day average (~14M). This distribution pattern validates the breakdown, with high-volume sell-offs outweighing low-volume rebounds (e.g., 2025-10-06’s 0.96% gain on 18.6M volume failed to sustain momentum). This divergence signals weak buying conviction.
Relative Strength Index (RSI)
The 14-day RSI (24.1) is deeply oversold (<30), nearing levels last seen in April 2025 (22.5). Historically, such extremes preceded tactical bounces, but RSI can remain oversold during strong downtrends. The current reading may warn of exhaustion, though without confirming signals, it carries limited predictive power.
Fibonacci Retracement
Drawing Fibonacci levels from the April 2025 low ($31.88) to the July 2025 high ($44.66), SLB has breached the 78.6% retracement level ($33.75). This breakdown opens a path toward the 100% retracement at $31.88. Resistance now clusters between the 61.8% ($36.65) and 50% ($38.27) levels, aligning with moving average barriers.
Confluence and Divergences
Confluence exists at $31.88–$32.00, where the April 2025 swing low, 100% Fibonacci retracement, and Bollinger Band lower boundary converge. This zone may trigger short-term support. However, bearish divergences dominate: MACD momentum and volume confirm the downtrend, while oversold oscillators (RSI, KDJ) lack corresponding bullish reversals. The breach below all key moving averages further underscores structural weakness.
Conclusion
SLB demonstrates entrenched bearish momentum, with candlestick patterns, moving averages, and volume validating the breakdown. Oversold oscillators hint at potential near-term consolidation near $31.88 support, but absent bullish divergences or volume confirmation, rallies toward $34.50–$35.00 appear vulnerable to rejection. A close below $31.72 would likely extend declines toward the psychological $30.00 threshold.