How to Trade Oil & Gas p9

Royal Dutch Shell (RDSB)

Where next for RDSB shares?

As with BP, RDSB has a potentially attractive dividend yield at current price levels.
Liquefied natural gas (LNG) the only fossil fuel to be increasing its share of the global energy market, so any Oil & Gas company with good capability in this area will be viewed favourably by the brokers.

Will shares in Royal Dutch Shell (RDSB) rally towards the highs of 2410p or fall towards lows of 1500p?

Deposit requirement: 5%

£45,000 of exposure to (3,120) RDSB shares can be secured for £2,500*.

A bullish trade here could go on the prospect of the share price bouncing off the 1600p level and heading towards 1800p. Beyond that, 4 week highs 1857p and a quick 16% profit might be seen to be attainable. The trader may instead seek confirmation of the new uptrend by waiting for the price to clear 1800p before going long, targeting the highs of 2410p and a 33% return.

If the price were to fall below 1685p, a bearish trader might short the stock expecting the price to fall further towards 5 year lows of 1500p and an 11% return.

Broker Consensus: 58% Buy, 32% Hold, 10% Sell

Average 12-month broker target price: 1992p
NB: All pricing and consensus data from Bloomberg on 12 Nov; Consensus breakdown available on request ; *before commission

« Back to Category

This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.

Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research

Comments are closed.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.