• Chart of the Day – Reader Request Edition: Schlumberger Limited (SLB)

    by  • November 14, 2012 2:58 pm • Charts to Watch, Tony Venosa's Chart of the Day • 0 Comments

    Today’s chart is of Schlumberger Limited (SLB) which supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide.

    Ticker:  Schlumberger Limited (SLB)

    What I Am Looking At:

    • Energy/Oil Service Sector showing relative weakness, year-to-date
    • Sitting on 0 percent year-to-date level, could act as support
    • Monthly chart shows triangle formation, consolidating in the long-term time-frame
    • Daily chart (2nd chart above) break down of Head & Shoulders Top, possible downside target of $62.50
    • ~$62.50 level coincides with the uptrend line of the triangle pattern on the monthly chart
    • Lowly 1 percent of the float is sold short indicating an unwillingness among shorts to press their bets
    • 24 out of 26 analysts rate the shares a “buy” or better, downgrade potential
    • Possible delta-hedging decline as preponderance of put open interest resides at the major strike prices all the way down to 60-strike for December/January series

    About

    Tony Venosa, CMT is a Senior Options Strategist and works on the trading desk at Schaeffer’s Investment Research. He joined Schaeffer’s in 2010. He has worked in the finance industry for over 15 years. He began his career as a trading assistant in Chicago on the floor of the Chicago Mercantile Exchange. He later moved upstairs and worked as a commodities broker on both the retail and hedging side. He left the brokerage industry to begin his trading career as a proprietary equities trader at a Chicago firm. In 2000, Tony moved backed to his hometown and continued trading his personal account. He later went on to earn his Chartered Market Technician designation. He earned a B.S. in Finance from Miami University. Tony’s main focus is short-term directional option trading.

    http://www.schaeffersresearch.com/

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