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Shell’s 50-Day and 200-Day Moving Averages Are Equal

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Sep. 13 2018, Updated 10:10 a.m. ET

Shell’s moving averages in 2018

In the previous part, we discussed Royal Dutch Shell’s (RDS.A) stock performance, which has fallen 7% in the third quarter. Now, we’ll discuss Shell’s moving average trend in the current quarter. We’ll also discuss the company’s moving averages in the first and second quarter.

In February, weaker broader markets and lower oil prices impacted Shell stock and its 50-day moving average. In the second quarter, the markets recovered and oil prices rose, which boosted Shell stock. Shell posted better-than-expected first-quarter earnings, which led to a rise in Shell stock and its 50-day moving average.

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Shell’s moving averages in the third quarter

In the third quarter, Shell published its second-quarter earnings, which missed the earnings estimates. Lower oil prices in the third quarter have impacted Shell stock. Shell’s 50-day moving average has also fallen. A steeper decline in Shell’s 50-day moving average compared to a decrease in its 200-day moving average nullified the gap between both of the moving averages. Currently, both of the moving averages are almost at the same level.

An additional fall in Shell stock could lead to a fall in its 50-day moving average, which could break below its 200-day moving average. When a stock’s 50-day moving average breaks below its 200-day moving average, it’s considered to be a bearish sign. Shell stock is close to entering the bearish zone. In order to refrain from getting into bearish territory, Shell stock needs to maintain the current level.

Peers’ moving averages

Total’s (TOT) 50-day moving average trades 5% above its 200-day moving average. Eni (E) and Suncor Energy’s (SU) 50-day moving averages trade 4% and 9% above their 200-day moving averages. PetroChina’s (PTR) 50-day moving average trades 1% above its 200-day moving average.

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