Will Shell break support, or will it rise again back to 2675p?

• Shell has major support zone around 2370p thanks to three trendlines.
• Now trading 2420p (at time of writing).
• Will the pattern repeat, the shares climbing back towards 2675p?
• Shares -14.7% from 2018 highs; +10.6% from 2018 lows; -3.6% year-to-date.
• 21 Nov: Shell to sell Greater Sunrise stake to East Timor Government
• 21 Oct: Panmure says shares could further benefit as Shell’s $25bn buyback programme picks up
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading Shell – An Example

Let’s say you like the Shell support level, you think it’s heading back towards 2675p again. You decide to buy exposure to £10,000 worth of Shell using a CFD, at the current price of 2420p. To do this, you need £2,000.

Let’s assume Shell rises back to 2675p (+10.5%). Your profit would be £1,050, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Shell falls 5% and hits your stop-loss. Your loss would be £500.

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