Market Analysis

Is Shell ready to move north again?

Little has happened since we last looked at the Royal Dutch Shell share on 29 April (Link: Shell attracts media attention again). The market could not overcome the barrier of €29.17. On the contrary, it even broke downwards out of the band between €29.17 and €28.57 but was later able to return to this band. The market is currently trading at the upper limit of the band. Yesterday the upper limit was tested, but the bears drove the market back into the band. Nevertheless, the stock marked a new high for the year.

The question now is whether the bulls have enough strength to drive the market higher, above yesterday’s closing price of €29.17? If the market can also close above yesterday’s high, this could be the hoped-for sign that the bulls need for another rally.

The stock could get a tailwind from the positive signals regarding the trade dispute between the USA and China. It is essential that OPEC and other countries such as Russia continue to keep to the reduction in production from 2017. At yesterday’s meeting of the OPEC states, it was signaled that the cutback could be maintained. The reports from Japan on the fringes of the G20 summit, when Saudi Arabia and Russia reached an agreement to this effect, were similar. The other states could follow suit today in the so-called “OPEC+” round in Vienna. This could lead to a further rise in the price of oil.

A look at the chart shows how important it is for the market to break through the barrier at €29.17 at the closing price. Then the range between €29.81 and €30.17 could be the next larger structural zone for the market.

If the market again breaks downwards out of the structural band between €28.57 and €29.17, then the area around €28.02 could provide the first support for the market. Further support zones could wait for the market in the areas of €27.45, €26.92 and €26.38.

The MACD oscillator is currently in decline. The trigger line is approaching its MACD line. The histogram is flattening out.


RDSA.NE Daily Chart Source ActivTrader

RDSA.NE Daily Chart | Source: ActivTrader


Written by Daniel Schuetz, External Analyst, ActivTrades

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