Will Royal Dutch Shell turn, or will it continue to rise to May 2018 highs of 2843p (+8.3%)?

• Twin breakout to trade 2622p  (at time of writing).
• The ‘trend is your friend’. Will it continue towards 2843p (+8.3%)?
• Shares -0.2% from 2019 highs; +17.8% from 2019 lows; +12.1% year-to-date.
• Oil prices higher on hopes of more demand and fears of lower supply.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Shell – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue to 2843p . You decide to buy exposure to £10,000 worth of Shell using a CFD, at the current price 2622p (at time of writing). To do this, you need £2,000.

Let’s assume the Shell trend continues upwards to May 2018 highs of 2843p (+8.3%). Your profit would be £830, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Shell breaks lower, falling 3% and it hits your stop-loss. Your loss would be £300.

This is provided for information purposes only. It should not be taken as a recommendation.