A trading opportunity for you?

Will Royal Dutch Shell break support, or will it rise again back to 2,725p October highs?

• Royal Dutch Shell has a horizontal support since April, with 3 bounces, most recently in mid-September.
• Now trading 2,478p (at time of writing).
• Shares -12.7% from 2018 highs; +13.15% from 2018 lows; -1.22% year-to-date.
• Shares falling on the back of weaker oil prices, as Saudi Arabia pledged to further boost output (23 Oct)
• According to Fitch Ratings, major oil producers are still generating positive free cash flows.
• Shareholders could further benefit as Shell’s $25bn buyback programme picks up pace, according to analysts at Panmure Gordon (18 Oct).
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading Royal Dutch Shell – An Example

Let’s say you like the Royal Dutch Shell support level, you think it’s heading back towards 2,725p again. You decide to buy exposure to £10,000 worth of Royal Dutch Shell using a CFD, at the current price of 2,478p. To do this, you need £2,000.

Let’s assume Royal Dutch Shell rises back to 2,725p (+10%). Your profit would be £1,000, 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. Royal Dutch 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.