Will SHELL PLC-ADR breakout?

SHELL PLC-ADR (NYSE:SHEL) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NYSE:SHEL.

Technical analysis of NYSE:SHEL

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

Taking everything into account, SHEL scores 9 out of 10 in our technical rating. 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 93% 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 - 58.03 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 55% of 388 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:

SHEL has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is very little resistance above the current price. There is a support zone below the current price at 56.4, 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 can NYSE:SHEL be traded?

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.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

Every day, new breakout setups can be found on ChartMill in our Breakout analyzer.