Why Shell has Upside Potential
$SHELL PLC(RYDAF)$'s recent earnings report has me cautiously optimistic about the oil giant's future. While the headline numbers showed a year-over-year decline, they still managed to beat analyst expectations by a significant margin. This, combined with a potential technical breakout on the charts, paints an interesting picture.
The adjusted earnings of $7.7 billion surpassed analyst predictions, demonstrating Shell's ability to navigate the current market environment. The company's financial health is further bolstered by a decrease in net debt and the announcement of a $3.5 billion share buyback program. This commitment to rewarding shareholders is a positive sign for investors.
SHEL Daily Chart
Technically, the chart hints at a possible bull flag pattern. This bullish continuation pattern emerges after a strong price uptrend, followed by a period of consolidation within a narrowing range – a flag-like formation. A decisive breakout above the upper trendline of this flag could signal a continuation of the uptrend, potentially leading to higher prices.
However, I prefer to maintain a measured approach. While the earnings report is encouraging, the year-over-year decline and the broader industry trend of falling profits due to lower gas prices cannot be ignored. The success of the bull flag pattern also hinges on a confirmed breakout with increased buying volume.
Overall, Shell's earnings report is a positive step forward. The company's financial strength, commitment to shareholders, and the potential for a bullish technical breakout are reasons to be cautiously optimistic. However, I'll be closely monitoring the price action and broader market forces before making any investment decisions. A confirmed breakout above the bull flag, coupled with sustained positive news about the energy sector, would solidify my bullish sentiment on Shell.
Follow @TigerStars @Daily_Discussion @Tiger_SG @TigerEvents @TigerPM
Disclaimer: This is not financial advice. Please do your own research before making any investment decisions.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Nice dream tred
Verry like