Oil Basket Weekly Uptrend Opportunity based On 1.00 Lot Calculation:
OIL SECTOR EARNINGS SEASON OCTOBER 28th – November 2nd
|
Company |
Ticker |
Sectors |
Earnings Date |
Time |
|
Exxon Mobil Corp |
#XOM |
Oil |
October 29, 2021 |
PREMARKET |
|
BP Plc |
#BP |
Oil |
November 2, 2021 |
PREMARKET |
|
Royal Dutch Shell Plc |
#RDSA.L |
Oil |
October 28, 2021 |
PREMARKET |
Source: Bloomberg
- EVENT: Worldwide energy shortages are threatening to develop into a full-blown crisis with implications that stretch from Europe to China and the U.S. oil patch. Natural-gas prices in Europe and around the world have risen amid shortages. Shortages of coal and natural gas, similar to those that have hit Europe, are partly behind shortages of electric power in China. In the UK (due to truck driver shortages), at least half of the gas stations outside the motorway network have run out of fuel, the Financial Times reported. The global mismatch of demand relative to supply is larger than the expected, with the recovery in demand turning out to be faster than anticipated. Global gas shortage and winter oil demand could firmly support revenues of the company.
- Goldman Sachs recently raised its year-end Brent crude price forecast to $90 from $80, increasing its call on WTI to $87. Most notably, the bank’s analysts said Hurricane Ida, which battered oil-production infrastructure, should prove to be “the most bullish hurricane in U.S. history.”
HISTORICAL PERFORMANCE (PAST 8 QUARTERS): EARNINGS and REVENUE
|
Company |
Earnings Beats Expectations |
Revenues Beats Expectations |
|
Exxon Mobile Corp |
6 of 8 |
6 of 8 |
|
BP Plc |
6 of 8 |
2 of 8 |
|
Royal Dutch Shell Plc |
6 of 8 |
1 of 8 |
Source: Bloomberg
STOCK PRICE PREDICTION: BASED ON ANALYSIS
|
Downside potential |
Upside Potential |
|
-3.50% |
+6.50% |
|
Potential Profit/Loss on 1 lot of every stock in the basket1 |
|
|
-$4,424 |
$8,215 |
|
-€3,796 |
€7,050 |
|
-£3,282 |
£6,095 |
|
-C$5,620 |
C$10,437 |
Data Source on Stock Returns and Volatility: Bloomberg
TARGET LEVELS: SUPPORT AND RESISTANCE
|
Company |
Support |
Current Price |
Resistance |
|
Exxon Mobil Corp |
$56.94 |
$59.60 |
$62.84 |
|
BP Plc |
324.24 pence |
336.00 pence |
357.84 pence |
|
Royal Dutch Shell Plc |
1582.60 pence |
1640.00 pence |
1746.60 pence |
Note: Support and Resistance Levels have been calculated by using upside and downside potential figures.
Please note that past performance does not guarantee future performance.
1-Profit/Loss Calculation (**): Based on 1 lot (*) on each of the three stocks (3 lots). Range: based on fundamental analysis.
* Exxon Mobil Corp and Royal Dutch Plc: 1.00 lot is equivalent to 1000 units, BP Plc.: 1 lot is equivalent to 10000 units.
** Calculations for exchange rate used as of 13:24 (GMT+1) 29/09/2021.
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client Manager regarding their use.
*** You may wish to consider closing your position in profit, even if it is lower than suggested one
**** Trailing stop technique can protect the profit – Ask your Client Manager for more detail