Positive signs for Royal Dutch Shell
Our expert has a look at the chart for the oil giant.
4th August 2021 09:36
by Alistair Strang from Trends and Targets
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Our expert has a look at the chart for the oil giant.
Royal Dutch Shell Class A (LSE:RDSA), similar to the new (and rather tasty) chocolate bar, Caramilk, little things can give considerable promise.
Royal Dutch Shell's share price has experienced a tiny little nudge upward, the chart below showing the share has closed above Blue, literally gapped up by the price of a bar of chocolate! Apparently we should now present an optimistic report for the future based on confectionary!
Given BP's share price performance this week, it's difficult not to experience some optimism for the future of Shell.
However, it must be remembered the share is nowhere near recovering above the share level, pre-pandemic, instead spending this year hovering around the 1500p level. But given the price has finally opted to close above the immediate downtrend, we can hopefully extrapolate a future which eases the pain for long suffering investors.
Above 1490p calculates with the potential of fairly near term traffic in the direction of 1613p. Such an ambition is liable to prove important, taking the price above all the highs since the Covid-19 drop was enacted in 2020 and thus, priming the pump for future growth.
Above 1613 allows a secondary target of 1733, this being extremely significant as it intrudes into Big Picture territory where a longer term influence at 2017p is shown, rather neatly matching the share price level before the world fell apart and almost certainly capable of providing a future glass ceiling.
For now, our outlook on Royal Dutch Shell is based on the price of a bar of chocolate (as recommended by our local petrol station), hopefully facing a similarly sweet future. Who knew what would happen, when Cadbury mated a Dairy Milk with a Caramac bar?
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.
Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.