Swing Trading Plan
Holding Period
2-7 trading days
Expected figures are probability-weighted from our historical pattern database; Trade R:R is measured from the entry, target and stop levels.
Current Setup
CLB is forming an ascending triangle pattern with a structure score of 14.0 and breakout score of 13.0 (both solid indicators). The stock trades at $12.05, squeezed between resistance at $12.85 and support at $13.16, creating a tight consolidation. Volume is subdued at 0.6x average (377,849 shares vs. 630K daily average), which tempers breakout confidence. RSI at 52.0 signals neutral momentum—neither overbought nor oversold. The ascending triangle suggests a potential upside breakout, though weak volume and the 3-month decline of -15.2% reflect recent headwinds.
Stock Context
CLB reported Q2 2026 revenue of $124.6 million, up 2% sequentially but down 4% year-over-year, with operating income of $9.2 million and EPS of $0.13. Margins were pressured by reduced client activity in the Middle East, lower crude assay activity due to Strait of Hormuz disruptions, and expanded European sanctions related to Russia-Ukraine conflict. Reservoir Description revenue fell 4% sequentially and 9% year-over-year to $78.7 million. However, Core Lab was engaged to support multiple exploration, appraisal, and carbon storage projects across Asia-Pacific and Africa in Q2. The company repurchased 214,712 shares for $2.7 million and declared a quarterly dividend of $0.01 per share, signaling management confidence despite near-term operational challenges.
What to Expect
A successful breakout above $12.85 resistance would target the conservative measure of $12.54, though this modest target reflects the tight consolidation range. With a win probability of 62.27%, the odds favor bullish resolution. Volume confirmation would be critical—the pattern requires a surge above the 0.6x current level to validate any move. The setup fails decisively if the stock closes below key support at $13.16. Given the low ATR of 0.48 (3.98% annualized), this stock exhibits below-average volatility, suggesting a contained breakout scenario. Overall score of 79.5 indicates solid technical merit.
Risk Factors
Geopolitical disruptions—Middle East client activity disruptions, Strait of Hormuz shipping impediments, and Russia-Ukraine conflict—continue impacting margins, though management maintains capacity for eventual normalization. The stock is down 40.7% from its 52-week high, suggesting sustained structural headwinds beyond temporary disruptions. Volume at only 60% of average is a red flag for momentum sustainability. The stock has declined 15.2% over three months and 4.5% in the past week, indicating lingering seller pressure. Beta of -0.02 suggests minimal correlation to broad market rallies, reducing upside catalysts from market strength. The Energy sector regime is bullish (0.84), but CLB's isolated weakness suggests sector tailwinds may not lift this specific stock unless operational disruptions ease.
How We Find and Score This Setup
We scan more than 6,000 NYSE and NASDAQ stocks every trading day and compare each detected pattern against a database of 370,000+ historical detections. Every setup is scored across three dimensions: Structure, Volume, and Breakout Readiness. Win probability is a calibrated estimate of how similar historical setups performed over the following 10 trading days. This is a swing trading tool built for multi-day holds. It is not built or tested for day trading.
Frequently Asked Questions
Is CLB a good swing trade?
CLB scored 80 out of 98 on our ascending triangle scan, with a 62% historical win probability over a 2-7 trading days hold. Strong setup based on our systematic scoring.
What is the entry, target, and stop loss for this setup?
The setup's reference price is $12.05, with a conservative target of $12.54 and a stop loss at $11.50.
What would invalidate this ascending triangle setup?
A close below the stop loss at $11.50 would invalidate the setup and suggest the pattern has failed.
How is the win probability calculated?
Win probability is a calibrated estimate of how similar historical ascending triangle setups performed over the following 10 trading days, drawn from a database of 370,000+ historical pattern detections across 6,000+ NYSE and NASDAQ stocks.