RDS-A unable to break through key resistance level
Royal Dutch Shell PLC American Depositary Shares (RDS-A) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
RDS-A finished the month 2.32% higher at 32.69 after losing $0.75 (-2.24%) today on high volume, notably underperforming the S&P 500 (1.54%). Today's close at 32.69 marks the lowest recorded closing price since May 29th. Trading up to $0.42 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price.
Daily Candlestick Chart (RDS-A as at Jun 30, 2020):
Tuesday's trading range has been $0.94 (2.91%), that's slightly below the last trading month's daily average range of $1.00. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for RDS-A.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern. The last time a Bullish Hikkake Pattern showed up on May 29th, RDS-A gained 3.85% on the following trading day.
Unable to break through the key technical resistance level at 32.77 (R1), the stock closed below it after spiking up to 32.80 earlier during the day. The failure to close above the resistance could increase that levels significance going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for Royal Dutch. Out of 305 times, RDS-A closed lower 63.61% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 50.16% with an average market move of -0.38%.