PeakTrader.com

[arthur]

Oil stocks tend to move on anticipation of oil prices. SLB, a large oil service and equipment stock, started to fall when oil prices peaked at over $58 a barrel about two weeks ago. Oil closed at about $55 a barrel Thu, and may fall to just below $50 a barrel short-term. SLB may bounce two points, to 72, next week on end-of-the-quarter window dressing. It's uncertain if lower oil prices are priced-into the stock. So, perhaps, SLB will either hold 69.70 (2004 high and breakout point) or fall to the 200 day MA at around 66.