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Royal Dutch Shell Down Slightly, But Still Has Bullish Momentum on New DoE Contract

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Written By: Eno Ikenna Eteng
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    Summary:
  • The Royal Dutch Shell share price is down slightly on the day, but still has bullish momentum going forward on new DoE contract.

The Royal Dutch Shell share price continues its advance, moving in tandem with crude oil prices which have continued to soar on rising demand.

Rising coal and natural gas prices are also helping to boost the company’s share price. Increasing industrial demand for crude oil derivatives as an alternative to natural gas and coal are also helping to boost prices.

Last week, a consortium of companies led by Royal Dutch Shell secured a contract from the US Department of Energy to develop a concept design that shows the feasibility of storage of large-scale liquid hydrogen at export terminals. A successful demonstration of the $12 million project could clear the pathway for the large-scale use of liquid hydrogen as an alternative energy source.

Royal Dutch Shell Share Price

As the measured move from the ascending triangle is exceeded, the 1785.4 resistance has given way, opening the door towards the 1833.4 price mark. The 21 February 2020 high at 1914.60 is an additional target to the north if price action takes out the 1833.4 resistance. Above this level, the 3 February low at 1960.0 forms an additional barrier.

On the other hand, profit-taking could spur a price decline towards 1713.4. 1628.2 and 1587.0 are additional downside targets that come into play if the corrective decline continues.

This post was last modified on Oct 18, 2021, 17:05 BST 17:05

Written By: Eno Ikenna Eteng

Eno's work as a technical analyst and author since 2009 is well recognized in the industry and on several freelance platforms. He is also a member of the prestigious UK Society of Technical Analysts and a top-ranked participant in the Basic Investment Banking and Asset Management simulations with Amplify Trading.

Published by
Written By: Eno Ikenna Eteng