Core Labs Looks Headed for a Slowdown
Core Laboratories (CLB) provides reservoir management and production enhancement services to customers in the oil and gas sector. Since its 2009 low, the stock has been on a perfect trajectory higher, pausing only briefly, to consolidate in a head-and-shoulders continuation pattern in the last half of 2011. It broke above that neckline resistance in February, but recent price action suggests there may be another pause pending in the long-term rally.
The weekly chart shows the head-and-shoulders continuation pattern and the 50-day moving average touching the 200-day moving average for the first time since the 2009 rally began. Shortly after the left shoulder was formed in late August and early September, there was a series of high wave or upper shadow candles, and they signaled the downturn that formed the low point of the pattern. These candles reflect the inability of the stock to maintain higher prices and suggest it must first retest lower levels....239 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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