SHELL PLC-ADR is setting up nicely for a breakout.

A possible breakout setup was detected on SHELL PLC-ADR (NYSE:SHEL) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NYSE:SHEL.

Technical Analysis Observations

Every day ChartMill assigns a Technical Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple technical indicators and properties.

Overall SHEL gets a technical rating of 9 out of 10. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, SHEL is showing a nice and steady performance.

• Both the short term and long term trends are positive. This is a very positive sign.
• Looking at the yearly performance, SHEL did better than 94% of all other stocks.
• SHEL is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so SHEL slightly outperforms the market at the moment.
• In the last month SHEL has a been trading in the 53.03 - 57.66 range, which is quite wide. It is currently trading near the high of this range.
• SHEL is an average performer in the Oil, Gas & Consumable Fuels industry, it outperforms 57% of 390 stocks in the same industry.

Why is NYSE:SHEL a setup?

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NYSE:SHEL currently has a 9 as setup rating:

Besides having an excellent technical rating, SHEL also presents a decent setup pattern. Prices have been consolidating lately. There is very little resistance above the current price. There is a support zone below the current price at 56.67, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for SHEL in the last couple of days, which is a good sign.

How to trade NYSE:SHEL?

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this zone.

Of course, there are many ways to trade or not trade NYSE:SHEL and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

More breakout setups can be found in our Breakout analyzer.