After bouncing off of an uptrending Gann angle several weeks ago, Royal Dutch Shell (RDS.A), formed a main bottom at $60.62 that was confirmed by the last week’s solid rally. This week this support angle moves up to $62.29.
Weekly RDS.A Pattern, Price & Time Analysis
Although Friday’s strong finish was not a trend changing event, the fact that the stock closed in a position to breakout over a key retracement zone at $66.35 to $67.70 is a strong indication of higher prices to follow.
A follow-through rally could mean a test of a downtrending Gann angle this week at $70.35. A move through this angle will be a sign of strength, but the main trend will not change to up until the swing top at $72.07 is violated.
