Firstly it must be noted that the stock chart used in this article derives its price from the Euronext stock exchange denominated in Euros. The reason why I've highlighted this aspect is because this stock is a multinational corporation with several listings elsewhere including the London and New York Stock Exchanges which would price the shares in the respective countries currency.
In saying this by analysing the stock in Euros you might not yield the same sentiment if priced in another currency due to the relativeness of each currency to one another.
Looking at the chart we see price has been stuck in a sideways motions within a considerably wide range over the last number of years. I've excluded the use of moving averages from it as the whipsaw movement of price would make the indicator ineffective.
The price shows a strong correlation with general price movements in global equities up until 2014 when the price of oil peaked. The uptrend, marked in green, remained in place from its origins in 2009 to its failed attempt to break pass the previous high last set in 2007 which admittedly had the hallmarks of a trend with vigorous ability to set the outlook higher.
However what we've seen afterwards is an unexpected failure coupled with a flurry of buyers scrambling to exit positions with the resultant outcome of the price reaching support marked out at the bottom of 2009 in relative quick succession with an exceedingly strong move off the lows that ended the slump.
Lastly the RSI has breached underneath the 50 level suggesting momentum favouring the sellers. To add further evidence to this belief I've circled an area on the indicator where it tried to surpass the mark yet failed leaving behind trails of optimism.
Daily
In contrast to the monthly I've attached moving averages to the Daily over a period of one year as we've seen a great deal of swaying in the price. Immediately noticeable is the bounce off the lows registered in January following the sudden change in view regarding the supply & demand dynamics in the oil market.
Although a distinct trend can be seen the distance between subsequent retests is far too long to establish any real threat to the downtrend which is why I classified the upward motion a bounce rather than an uptrend.
This has caused the price trend to become vulnerable to heavy selloffs that have occurred in the last two weeks. The ease with which price sliced down past the trendline indicates the sellers are still dominant in the current market environment.
Added to this is a potential Head & Shoulder formation that normally appears at the end of a strong up move. The right shoulder has yet to form but judging by the position of the stochastic indicator, there's still space for price to move upwards before it gets into overbought territory.
If price were to fall below the 200 day moving average (blue line) the sellers would take full advantage and commit an attack on the buyers that could inflict damage to their hope filled mindsets.
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