Will Shell break resistance, or will it fall back to 2314p?

• Sideways range since Feb; breakdown from recent rally
• Fallen back from 2489p highs 4 times. Now 2439p (at time of writing)
• Will the pattern repeat itself, shares falling towards recent lows of 2314p?
• Shares -2.9% from 2019 highs; +9.6% from 2019 lows; +4.3% year-to-date
• Oil prices are off their highs amid fresh USD strength and trade war uncertainty
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Shell – An Example

Let’s say you like the Shell range, you think it’s heading back down to 2314p again. You decide to sell exposure to £10,000 worth of Shell using a CFD, at the current price of 2439p. To do this, you need £2,000.

Let’s assume Shell falls back to 2314p (-5.1%). Your profit would be £510, 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 rises 3% and hits your stop-loss. Your loss would be £300.

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