Will Royal Dutch Shell turn, or will it continue to rise to May-Oct falling highs around 2600p?

• Breakout above falling resistance at 2416p to trade 2440p  (at time of writing).
• The ‘trend is your friend’. Will it continue towards 2600p?
• 1 Feb: Shell Q4 strong results  beat market expectations.
• Oil prices rebounding +7% in January from Christmas lows helping oil majors.
• Shares +2.9% from 2018 highs; +7% from 2018 lows; +4.3% year-to-date.
• 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 2600p . You decide to buy exposure to £10,000 worth of Shell using a CFD, at the current price 2440p (at time of writing). To do this, you need £2,000.

Let’s assume the Shell trend continues upwards to May-Oct falling highs around 2600p (+6.5%). Your profit would be £650, 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.