Trading Idea: Schlumberger Breaking Out?

Published on Thursday, 14 January 2010 23:56 Written by TradersHuddle Staff

New York, Jan 14^th (TradersHuddle.com) – Shares of Schlumberger (NYSE:SLB) are trading very close to calculated resistance at $72.00 with current price action closing at just $71.29 makes the stock very close to moving to a higher range and potentially getting the attention of momentum traders.

Schlumberger specializes in providing oilfield services, supply technology, project management and information solutions to oil and gas industry.

Schlumberger’s is trading in a tight range, which is defined by calculated support defined at $68.22 and by the resistance level at $72.00, if Schlumberger’s stock price moves pass resistance it could signify a breakout and momentum move to a new range.

Traders wanting to establish a position in Schlumberger should place close attention to the stock’s price action for clues that a breakout is in fact materializing. One of the entry points for Schlumberger is as the stock moves pass resistance; the other is if the stock fails to breakout then enter as close to $68.22, but do it only until there is evidence that buyers are materializing at that level.