Shell Stock Continues To Balance Above The Short-Term Downside Line

by Darius Anucauskas
11:52, 2021/04/30

Yesterday, the Royal Dutch Shell Plc (AMS: RDSA) delivered its earnings for Q1 2021 yesterday, showing a 3.23bln USD adjusted income. Initially, the stock made a move higher, however by the end of the day it reversed lower. Today, the stock continues the slide, however, it still remains above the broken short-term downside resistance line, drawn from the high of March 15^th. For now, we will take a neutral stance and wait for a violation of one of the key resistance or supports levels before examining the next short-term directional move.

Although there is a good chance we might see the stock moving higher again, we would first prefer to wait for a push above yesterday’s high, at 16.39 barrier. This way, more buyers might see it as a good opportunity to step in. If so, RDSA may rise to the 16.80 hurdle, where a temporary hold-up could occur. That said, if the buying activity remains elevated, the share price might easily get pushed to the 17.13 hurdle, or the 17.32 level, marked by the highs of April 6^th and March 30^th.

The RSI, despite being slightly below 50, is currently pointing higher. The MACD, although remains a bit below zero, is currently flat but continues to sit above its trigger line. Given the slightly unclear picture on our oscillators, we prefer to wait for a clear breakout through one of our levels, before examining the next short-term directional move.

Alternatively, if the share price slides below the aforementioned downside line and then falls below the 15.55 hurdle, marked by the lowest point of April, this will confirm a forthcoming lower low and could open the door for further declines. We will then target the 15.16 obstacle, a break of which might set the stage for a push to the 14.81 level. That level is marked by the lowest point of February.

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