Royal Dutch Shell under pressure after Q2 trading update
Nicolas Suiffet June 30, 2020 6:08 PM
Royal Dutch Shell's profitability is being eroded by the impact of the coronavirus pandemic on the industry.
Royal Dutch Shell's profitability is being eroded by the impact of the coronavirus pandemic on the industry. Shell increases write-downs from $15 billion to $22 billion after tax to recognize the colossal impact of the crisis on demand for oil. The company said: "Oil Products sales volumes are expected to be between 3,500 and 4,500 thousand barrels per day”.
From a chartist’s point of view, the stock price remains stuck in a short term trading range between 18.7E and 13.4E. The bearish gap opened on the 9th of March still maintains a downward pressure. The daily Relative Strength Index (RSI, 14) is below its neutrality area at 50%. The stock price just fell below its 20/50DMAs. As long as 18.7E is resistance, the risk of a break below 13.4E will remain high. A break below 13.4E would trigger a bearish acceleration towards March low at 10.3E. Only a push above 18.7E would reverse the downtrend.
Source: GAIN Capital, TradingView
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