Continuing our concentrated look at energy names today, we pick up the thread with Royal Dutch Shell (RDS.A).
Like other names in the energy patch, Royal Dutch Shell turned down in the middle of 2014, breaking below the 200-day simple moving average.
Royal Dutch is one of the weaker names we have looked at -- not because of a big point loss or percentage decline, but because the bounces on the way down never got close to the declining 200-day average. And the On-Balance-Volume (OBV) line indicates serious distribution by its downtrend.
In this chart, above, we can see the rapid rebound in prices starting in late September that was able to power Royal Dutch back above its 50-day moving average. Unfortunately, the movement in the OBV line has been anemic and suggests that Royal Dutch may have a subdued response to higher oil prices in the weeks ahead.
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.
Valuations for many enterprise software firms remain rich. But like chip companies, their earnings reports generally haven't done much to spoil the fun.
Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation.
If you have questions, please contact us here.
Email
Email sent
Thank you, your email to has been sent successfully.
