AI deal with Nvidia drives Schlumberger stock higher despite strong sell MACD

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Schlumberger jumps 3.23% to $52.14 today

Highlights

Schlumberger's expanded partnership with Nvidia targets generative AI solutions for the energy sector, seen as the main growth catalyst.
Despite an 85.9% decrease in institutional holdings, SLB reported 5% revenue growth, 17.45% ROE, and a 9.45% net margin year-over-year.
SLB trades in a strong bullish trend near $52.14, with technicals signaling possible short-term consolidation; expected five-day range is $51.59–$52.72.

Nvidia partnership expansion and investor rotation drive price action

Schlumberger has expanded its partnership with Nvidia to jointly develop artificial intelligence infrastructure and models for the energy sector, building on their collaboration since 2008 and focusing on generative AI solutions as of 2024. SLB is targeting the delivery of power equipment, turbines, and data solutions to support data centers and AI infrastructure amid softer drilling demand. Additionally, Kempner Capital Management Inc. decreased its holdings in SLB by 85.9% during the fourth quarter, and the company reported a 5.0% increase in revenue compared to the prior year, with a return on equity of 17.45% and a net margin of 9.45%. The expanded Nvidia partnership remains the main catalyst for the upward move.

Mixed momentum signals as buyers dominate above technical support

Technical analysis confirms ongoing bullish momentum for SLB, as the current price stays above key moving averages: SMA-20 at $47.99, SMA-50 at $48.81, and SMA-200 at $39.02, with the Ichimoku Kijun level at $48.02 as closest support. The daily MACD signals a strong sell despite ADX registering at 21.82 and favoring trend strength, while RSI near 59 and CCI at 81.87 are in buy zones but close to overbought. Stoch RSI and Bull/Bear Power (BBP) remain sharply overbought, showing dominant buyer activity. Today’s price opened just above the previous close, marking a slight bullish gap; intraday volatility is moderate but upward momentum holds, though divergence between oscillators and MACD could prompt short-term profit-taking.

Sideways bias likely as narrow range persists amid strong buying

Over the next five trading days, SLB is expected to trade in a range between $51.59 and $52.72, representing a typical volatility band relative to current levels. The probability of an increase above this range stands at more than 80%, reflecting persistent buyer interest. The baseline scenario envisions a tight sideways move as gains consolidate. A break above $52.72 could trigger further buying, while a drop below $51.59 may lead to additional profit-taking or a short-term pullback.

Viktoras Karapetjanc, expert at Traders Union, sees strong fundamental and macro tailwinds for Schlumberger after its expanded Nvidia partnership. He observes that persistent buyer interest is reflected in the technicals and the positive market sentiment following revenue growth and robust returns. The analyst expects continued consolidation near highs, with potential for fresh upside if $52.72 is cleared. "SLB’s momentum is well supported by both market fundamentals and macro trends — I expect further gains as confidence in AI-driven energy solutions grows."

Earlier, analysts noted that while Schlumberger maintained a broadly bullish technical profile, emerging institutional selling and conflicting momentum indicators introduced a risk of near-term volatility. The latest developments, including the Nvidia partnership expansion and continued price strength, reinforce the positive outlook but place added emphasis on monitoring for a potential breakout above $52.72 as a signal for renewed upside.

Source of Data: SLB Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.