Stock of the day: Royal Dutch Shell

Another virus variant, another correction and another recovery. You have got to love trading in pandemic times. An instrument which is heavily affected by Covid news is Oil. The price of oil, is strongly affecting the price of Oil and gas companies and we will analyse one of those companies today. Ladies and gentleman, here is the analysis of Shell.

In the past few days, Shell was moving very technically. You can see that we had a nice symmetric triangle (blue lines), which ended with the breakout to the upside. Later, we had a small correction, which was perfectly shaped like a flag (orange lines). The best thing is where this flag ended. It ended on a combination of crucial horizontal (yellow) and dynamic supports (up trendline, black). The bounce from those supports created momentum, which helped buyers finish the flag by breaking its upper line.

Major supports were used and crucial supports were broken – the way towards new highs is opened. The sentiment on Shell is now definitely positive.