RDSA.L closes higher for the 3rd day in a row
Royal Dutch Shell plc (RDSA.L) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, RDSA.L finished Wednesday at 2454.50 gaining £14.50 (0.59%), slightly underperforming the FTSE 100 (0.81%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (RDSA.L as at Feb 13, 2019):
Wednesday's trading range has been £23.50 (0.96%), that's far below the last trading month's daily average range of £38.27. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for RDSA.L. Prices continued to consolidate within a tight trading range between 2415.00 and 2460.00 where it has been caught now for the last three trading days.
Three candlestick patterns are matching today's price action, the Bearish Hikkake Pattern, the Bearish Spinning Top and the Hanging Man which are known as bearish patterns.
Prices are trading close to the key technical support level at 2427.50 (S1). Prices are trading close to the key technical resistance level at 2466.50 (R1). The stock ran into sellers again today around 2459.00 for the third trading day in a row after having found sellers at 2457.50 in the previous session and at 2460.00 two days ago. The last time this happened on January 10th, RDSA.L lost -1.28% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the nearby swing high at 2460.00 where further buy stops might get triggered.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for RDSA. Out of 149 times, RDSA.L closed higher 52.35% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 54.36% with an average market move of 0.66%.