Oil stocks have bounced around a little in recent months, but for the most part the overall trend has been to the upside. Tensions in the Middle East have increased and that has certainly had an impact on the price of oil. One stock that has been trending higher in somewhat of a pattern is Royal Dutch Shell Class A Shares (NYSE: RDS/A).
If you look at the daily chart below you will see that a trend channel has formed over the last four months. The lower rail connects the low from March with the lows from early and late May. The upper rail connects the highs from March, April, and June. The stock just hit the lower rail of the channel and looks ready to bounce once again.
The daily stochastic readings are in oversold territory and they just made a bullish crossover on July 19. We see that the indicators also made bullish crossovers at the previously mentioned lows in March and May.
The Tickeron technical analysis overview shows several bullish factors that could help the stock maintain the overall trend. The 50-day moving average is above the 200-day and the 10-day is above the 50-day.
The fundamentals for Royal Dutch Shell are mixed. Earnings were flat in the most recent quarterly report and they are only expected to grow by 6% for 2019. Sales have increased by 22% per year for the last three years, but they were down 6% in the most recent quarter.
The management efficiency measurements are a little below average with a return on equity of 10.9% and a profit margin of 8.5%.
XLE saw its Momentum Indicator move below the 0 level on May 30, 2023. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 94 similar instances where the indicator turned negative. In of the 94 cases, the stock moved further down in the following days. The odds of a decline are at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 68 cases where XLE's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
XLE moved below its 50-day moving average on May 02, 2023 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for XLE crossed bearishly below the 50-day moving average on May 04, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
The 50-day moving average for XLE moved below the 200-day moving average on May 12, 2023. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where XLE declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for XLE entered a downward trend on May 25, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where XLE's RSI Indicator exited the oversold zone, of 29 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for XLE just turned positive on May 23, 2023. Looking at past instances where XLE's MACD turned positive, the stock continued to rise in of 44 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where XLE advanced for three days, in of 331 cases, the price rose further within the following month. The odds of a continued upward trend are .
XLE may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
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A.I.dvisor indicates that over the last year, XLE has been closely correlated with FENY. These tickers have moved in lockstep 100% of the time. This A.I.-generated data suggests there is a high statistical probability that if XLE jumps, then FENY could also see price increases.