Can Oil Co’s Survive The Crash? Shell Income Crashes – Put Options Suggested
Jul, 29th 10:21
Royal Dutch Shell released its Q2 financial results for the fiscal year 2016 before the market opened on Thursday (28/7). As expected, Shell posted the lowest quarterly earnings in 11 years because of sliding crude oil prices. Shell disclosed an adjusted net income of $1.04 billion, compared with the expected number of $2.15 billion. This represents a 73% decline from the reading of $3.83 billion for the same quarter last year. The disappointing result from Europe’s largest oil company has dragged down the stock to a one-month low of 23.43. On the hourly chart, the price is under pressure from the moving average line staying above the price action, suggesting that the bearish trend is strong. But RSI (14) has moved out of the oversold territory and climbed to 31.8309, indicating that a bounce back may come about down the line. The price is expected to stumble in the short term before rallying again.
Buy Digital Put Option from 23.32 to 23.60 valid until 20:00 July 29, 2016