Royal Dutch Shell (NYSE:RDS.B) Rating Increased to Buy at ValuEngine

Lloyd Doyle
April 16, 2018

The XETRA listed company saw a recent bid of $28.12 on 39660 volume.

Diversification can be an important aspect of any investor's portfolio. Owning stocks that belong to different industries may also be a help to the success of the portfolio. Often times, sectors may trade off being market leaders. Knowing exactly what is held may help the investor when the time comes to make some adjustments.

Digging deeping into the Royal Dutch Shell Plc (RDSB.L) 's technical indicators, we note that the Williams Percent Range or 14 day Williams %R now sits at -24.88.

Some investors may find the Williams Percent Range or Williams %R as a helpful technical indicator. A CCI reading above +100 would imply that the stock is overbought and possibly ready for a correction. Using the CCI as a leading indicator, technical analysts may use a +100 reading as an overbought signal and a -100 reading as an oversold indicator, suggesting a trend reversal. The Williams %R is similar to the Stochastic Oscillator except it is plotted upside-down. A level of 50 would indicate neutral market momentum. Royal Dutch Shell Plc has a consensus rating of "Buy" and an average target price of GBX 2,282.56 ($27.92). On the flip side, a reading below -100 may signal a downtrend reflecting weak price action. The stock rating was maintained by Cowen & Co with "Buy" on Monday, January 22.

Currently, the 14-day Relative Strength Index (RSI) reading is at 67.24. The ATR is an indicator developed by J. Welles Wilder. When RSI moves below 30, it is oversold and could lead to an upward move. The normal reading of a stock will fall in the range of 30 to 70. Jefferies has "Buy" rating and $70.0 target. A reading under 30 may indicate that the stock is oversold, and possibly undervalued.

Watching some recent stock price activity for Royal Dutch Shell PLC (:RDS.A), we have seen shares trading near the $68.17 level. At the time of writing, the 14-day ADX for Royal Dutch Shell Plc (RDSB.L) is noted at 29.38.

A beta greater than one generally means that the asset both is volatile and tends to move up and down with the market. Many technical analysts believe that an ADX value over 25 would suggest a strong trend. A value of 50-75 would identify a very strong trend, and a value of 75-100 would lead to an extremely strong trend. The ADX is typically used in conjunction with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to help spot trend direction as well as trend strength.

For further review, we can take a look at another popular technical indicator.

The first is a short-term estimation called the 20-day simple moving average, which is estimated at 6.05%.

Some traders may be using technical analysis to try and beat the stock market. Now moving toward intermediate time frame, 50-day Moving average is more useful at showing position trading trends lasting 50 days. A certain stock may be considered to be on an uptrend if trading above a moving average and the average is sloping upward. For example, a stock that has a high standard deviation experiences higher volatility, and therefore, a higher level of risk is associated with the stock. A company that manages their assets well will have a high return, while if manages their assets poorly will have a low return. A beta below 1 can indicate either an investment with lower volatility than the market, or a volatile investment whose price movements are not highly correlated with the market.

Market capitalization is simply the value that can get when multiply all the outstanding shares of a stock by the price of a single share. Let's take a look at how the stock has been performing recently.

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