Technical Update - Shell. Is the two-year uptrend about to end?
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
(Note: This analysis is based on the Amsterdam listing) Shell has been trading in a wide rising channel for the past two years. With the failing attempt in August to make a new high down wards pressure could increase. Key support is €24.17. A close below is likely to fuel a sell-off down to 22.55 and 200 weekly SMA i.e., around 21.50 (0.382 retracement) and 21.00
If Shell manages to close above 28.03 uptrend resumes and higher highs above 28.73 should be expected.
There is Divergence on RSI i.e., an imbalance where the Strength Indicator does not support the recent higher levels in the share price. However, if August peak at 28.03 is taken out the imbalance picture is likely to be reversed.
Short term Shell seems be forming a triangle like pattern. Break out from there could be first indication of direction for Shell om the medium term as described above
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