Over the weekend, I wrote that buying energy could be the week's opportunity.
I hence ran a test on SLB, buying an oversold situation.
As you can see below, SLB closed at 87.16. I ran a test on the past 500 days to buy oversold levels and found that SLB would need to be bought lower than 83.69 in order to produce some positive stats.
We can see below that to reach very good returns, we would need to buy 6% below the 5MA, but there is only a 0.2% probability to reach this level. Today.
On the other hand, we can see that shorting bounces look more interesting and certainly more probable trades.
This small analysis shows that it is important to verify that one's opinion is valid and today's most probable trade on SLB is a short trade.
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