Europe's largest energy company, Shell Plc (SHEL) announced Wednesday that "it has abandoned a plan to cut oil production by 1%-2% per year until the end of the decade, instead maintaining output at current levels." The company argued that it had already met the target it had set for itself in 2021 through asset sales.
Let's check the charts and indicators.
In this daily bar chart of SHEL, below, I can see that prices have managed to trade higher the past 12 months but it has not been easy. Prices have tested and broken below the rising 200-day moving average line a number of times. Even though prices have moved higher the trading volume histogram has not shown us a pattern of increasing turnover.
The On-Balance-Volume (OBV) line has been weak since November and tells me that sellers of SHEL have been more aggressive than buyers. The Moving Average Convergence Divergence (MACD) oscillator is below the zero line.