SLB, Schlumberger N.V. update

SLB mar 24 2016 bslb mar 24 2016 s

You did not know that Schlumberger is a Dutch company? Well it is, at least for tax purposes.

We are concerned that suggest that oil could go down further, perhaps after a period of sideways action. From the big picture it is perfectly clear that we are looking at a “flat” that is incomplete and can still easily go to $40 or beyond. In fact it is  a classic flat without any warts at all. Therefore this C wave should unfold in a 5-wave sequence pretty well straight down. To date we can only count waves 1, 2, 3 and (part) of 4. There is still more of 4 to go and then 5. Already there is a possibility of overlap between waves 2 and 4 which should not happen. This can be explained by assuming a triangle is in the making as wave 4. In EW there is a school of thought that where overlap occurs with a triangle, it is not the extreme that counts but the value at the apex or e-wave of that triangle. Technically then there is no problem and we should expect a 5th wave at some point between now and a year from now. It is highly unlikely that this should happen without oil itself also getting hit. See also the oil blog.