Shares of Schlumberger (SLB) continue to trade near 52 week and multi-year lows. As the Federal Reserve does a surprise 50 basis point cut, the markets are expecting a recession in the next 6-9 months. The 10-year yield is now trading near 1% and many economists expect it to head lower. If there is a recession, Schlumberger will likely head lower still. There is a double bottom chart pattern emerging as a likely price target at $18.50. This is the major pivot low from 2002-2003. This is where investors should look for a longer-term buying opportunity on Schlumberger.
Amazingly enough, Schlumberger hit nearly $120 in 2015. It has been collapsing ever since. A move to the 2002-03 lows would be the level technical investors would expect to see a 1-2 year bounce off of and perhaps as much as a 100% upside move (back to $37). This technical double bottom chart pattern on Schlumberger (SLB) should be on high alert for every serious investor and trader over the next 6 months.
(Click on image to enlarge)
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