Have Shell shares just issued a warning sign?
With oil prices heading lower, our chartist assesses the implications for this high-flying oil major.
3rd June 2019 09:26
by Alistair Strang from Trends and Targets
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With oil prices heading lower, our chartist assesses the implications for this high-flying oil major.
Shell (LSE:RDSB)
When we last reviewed Shell (RDSB), we'd expected a bounce at 2,167p but, thankfully, the share price rebounded just above this point at 2,200p.
Perhaps it indicates strength? Crude oil prices are being hammered, so we should really review Shell's potentials again.
The immediate situation is slightly dangerous as weakness now below 2,440p suggests some travel coming down do 2,359p next.
Visually, this is pretty non threatening but issues start to develop with closure below such a point.
Essentially, it opens the door for further relaxation down to 2,177p and this time, we suspect it shall hit.
The chart below highlights a major issue, should 2,177p make an appearance. The price shall break below the uptrend since 2016 and thus, enter ambiguous territory where a series of severe drops become possible, potentially down to 1,725p or worse.
Some good news comes from Shell's traditional strength as there are suggestions 2,177p should prove capable of providing a realistic rebound.
Even from an immediate perspective, we'd have considerable hope if Shell somehow found sufficient excuse to better blue on the chart, presently at 2,568p.
This would, quite realistically, move the price into a region where a new high of 2,984p becomes target.
For now, we suspect it shall prove worth watching in the months ahead for 2,177p taking the stage.
Source: Trends and Targets Past performance is not a guide to future performance
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
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