SLB: On a weekly chart there is a potential bearish head and shoulders pattern that will become active if price breaks below $76 on negative news. Downside potential for the pattern is to the $66-$65 area over time.

If the news is instead a positive surprise, the pattern could fail. Patterns are most at risk during earnings when news may reverse sentiment and expectations, of which patterns are a manifestation.

Given that price is above $76, the pattern is still only a potential one. A move above $81 would void the pattern and that makes it the first level of major resistance on strong positive news. Additional resistance levels to watch above $81 as potential upside objectives are at $84.24 and $86.61.

[Schlumberger reports earnings Friday morning April 21 before the open.]