Analysts praise Shell's Q3 outlook for record refining margins, higher gas production
Analysts have evaluated Shell's third-quarter earnings outlook positively, citing record refining margins and increased gas production.
As the current price of $96.65 is situated between the resistance level ($99.15) and the support level ($92.47) during a short-term correction accompanied by volume, we will consider entry while monitoring for a potential rebound near the support level.
Based on the current price of $96.65, I will take profits when it reaches the resistance level of $99.15 and cut losses if it breaks below the support level of $92.47.
RSI (14) stands at 59.7, moving averages are in a bullish alignment (short-term above long-term), trading volume is 1.26 times the 20-day average, and the volatility over the past 7 days is confirmed at +1.9%.
Initially, we approached the situation conservatively, targeting an expected return of 1.5% and factoring in the correction range between the resistance level ($99.15) and the support level ($92.47). However, the actual result recorded a 10.4% return, receiving an OVERHIT rating. While it was appropriate to enter the position by capturing positive news regarding Q3 earnings outlooks, positively aligned moving averages (bullish alignment), and volume-backed momentum, it is regrettable that we adopted a conservative stance too early and failed to fully capture the upside, as we somewhat underestimated the destructive power of the momentum supported by the thematic rising trend and the S-Class conversion rate (10.6%).
Based on this trade, for our next trading strategy, rather than simply predicting a rebound off the support line during a short-term correction phase, we will place greater trust in momentum continuity during periods of favorable thematic news trends and high S-Class conversion rates, and flexibly raise our profit-taking targets.