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Whenever you have down markets, you should always be on the lookout for unnecessarily beaten down stocks. In other words, stocks where the price was driven down due mainly to the current market conditions rather than actual business processes. Its becoming distinctively clear that crude oil is going to play a major role come winter, so we’ll be focusing on same major players in the exploration and production field.
I would consider Schlumberger Limited (SLB) a best of breed; however, Haliburton (HAL) is a close second and the two are in relatively different price levels. Both stocks are basically showing same signs and moving in tandem., so see which you like best….
Schlumberger Limited – SLB
From the chart below, we can clearly see the previous resistance that Schlumberger broke out from. Now we’ll get to see if that resistance can turn into support. Look for possible turnaround bounce between now and support at $62.50.
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Haliburton – HAL
Haliburton has been on a solid 4 month uptrend, but it looks like we just bounced off the peak of the last high. If the current pattern is to continue, then that that should mean this stock should be coming back down to around $28. If this is indeed the case, then obviously we want a bounce higher.
Click to enlarge image
So there you have it. Fairly simple patterns, for simple trades. Want to learn more easy patterns and technical indicators?