Energy and chemical giant Shell plc (SHEL) has traded in a sideways to slightly higher pattern the past 12 months but we could soon see an upside breakout to new highs. Let's drill down on the charts and indicators.
In this daily bar chart of SHEL, below, I can see that prices are trading above the rising 50-day moving average line and above the rising 200-day line. The trading volume has been uneven since the price low in July.
The On-Balance-Volume (OBV) line has moved up and down with the price action but has not led prices with a move to new highs. The Moving Average Convergence Divergence (MACD) oscillator is bullish but only slightly above the zero line.
In this weekly Japanese candlestick chart of SHEL, below, I can see a double bottom at $25 back in 2020 followed by a long-term rise into late 2022. Prices trade above the rising 40-week moving average line.
The weekly OBV line shows a slight rise from late 2021. The MACD oscillator is bullish and I fail to see any top reversal patterns nor upper shadows.
In this daily Point and Figure chart of SHEL, below, I can see an upside price target in the $75 area. A trade at $61 will refresh the uptrend.
In this weekly Point and Figure chart of SHEL, below, I can see the same $75 price target as the daily chart above.
Bottom line strategy: Traders could go long SHEL either at current levels risking to $53 or on strength above $61 risking to $58. My price target is in the $75 area.
