Hamilton's E-Wave Analysis

Royal Dutch Shell RDS.A

RDS Jan 26, 2010

Royal Dutch is a good example of proper technical analysis and perhaps a reasonable indicator where energy stocks might go for the next little while. Predictions for vary from well above $200 to below $30 over the next year or so. Even assuming that one sides with the $200 scenario, this stock should have been sold because.

1. You do not simple want to guess.

2. The RSI is dropping like a stone.

3. The MACD is not confirming the tops.

4. The stock has retraced a near perfect 61.8% Fibonacci level

5. The rebound has a nice A-B-C pattern where C=A, give or take.

At the very least a stop-loss should be entered at about $55 to keep some of the profit from the lows of March. This applies to a good number of energy stocks.