The 20-Day Moving Average: SLB's 30% Gain in 26 Days
Schlumberger (SLB) gained 29.5% in just 26 days using a simple 20-day moving average pullback strategy. This is one of the most reliable indicators in swing trading—here's how to use it.
📊 The Trade
Entry
Result
What is the 20-Day Moving Average?
The 20-day moving average (MA20) is the average closing price over the last 20 trading days. It acts as dynamic support/resistance and shows the short-term trend direction.
Why MA20 Works:
- • Trend Filter: Price above MA20 = uptrend, below = downtrend
- • Support Level: Price often bounces off MA20 in uptrends
- • Entry Signal: Pullback to MA20 + bounce = high-probability entry
How SLB's MA20 Trade Worked
Step 1: Confirm Uptrend
SLB was trading above a rising MA20 throughout December. The trend was clear and strong.
Step 2: Wait for Pullback
On Jan 1, SLB pulled back to touch the MA20 at $38.38. This was the setup.
Step 3: Enter on Bounce
Price bounced off MA20 with volume. Entry at $38.38, stop at $36.50 (5% below MA). Target $46+ (20% gain).
Result: +29.5% in 26 Days
SLB rallied to $49.70, exceeding the target. The MA20 provided perfect support for the entire move.
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This analysis is for educational purposes only. Past performance does not guarantee future results.
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