Today, the Royal Dutch Shell stock (AMS: RDSA) managed to create a new high for this year, by breaking above the 29.26 barrier, which, up until today, was the highest point in 2019. That said, it will be interesting to see if the stock can close a daily candle above that barrier. If so, the price could continue accelerating further up, at least for a while more, hence why we will take a somewhat positive approach for now.
As mentioned above, if we see a daily candle above the 29.26 barrier, marked by the high of June 21st, this could be taken as a good sign by investors and more of them could be joining in. Such actions might lead to a strong up-move, potentially bringing the price to the round 30.00-dollar mark, which is the high of October 10th, 2018. This is where RDSA could stall for a bit, or even correct slightly lower. But, as long as the share price remains above the upside support line drawn from the low of June 4th, we will stay positive over the short-term outlook. We will then aim for the 30.00 hurdle again, a break of which could send the stock a bit higher to test the 30.33 area, marked by the peak of October 4th, 2018.
Our oscillators, the RSI and MACD, are in support of the above-discussed scenario. The RSI is still above 50 and points to the upside. The MACD is also pointing higher, by sitting above its trigger line in the positive zone.
Alternatively, if RDSA reverses sharply, breaks the upside support line and falls below the 28.60 hurdle, marked by the low of June 28th, this could put more pressure on the stock and send it further down. We will then look into the possibility of seeing a test of the 27.90 obstacle, which is the low of June 17th and is just fractionally below the 200-day EMA. If there is still not much interest among investors in the stock at that price, RDSA may slide more. A drop below the 27.90 support area could clear the path to the lowest point of June, at 27.40.
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