Is Slumping Schlumberger Hitting a Bottom?

Shares of Schlumberger (SLB) have been in a steady free fall for most of this year. Along with nearly the entire energy sector, the stock has been consistently putting in lower monthly lows since January. In mid-April, after a second rejection at its overhead 200-day moving average, SLB began a fresh down leg -- but signs of exhaustion are beginning to show. The stock may be finally gaining some footing and offering a low-risk entry for patient investors.

A few weeks after taking out big-time support near the 200-day moving average, the stock found support near $76.00. Shares were down over 13% from the January peak when they bottomed on Mar. 27. SLB rebounded in late March and into early April, before leaving behind an ominous spike high, after getting turned away by what was a very supportive 200-day moving average. The stock began a deep slide immediately after. Following a deep earnings-inspired breakdown gap on Apr. 21, SLB downside momentum became overwhelming....124 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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