Profit-taking appears to have cooled Aramco stock price predictions for the day, as the stock fell 1.76% despite a 2.92% uptick in oil prices.
InvestingCube's S&R Levels
In Sell Zone
The decline in the stock marks the second day of losses, just after Saudi Aramco overtook Apple as the world’s most capitalized company. Apple’s 5% drop in a previous trading session allowed the Saudi state-owned oil company to ease past the former, with a valuation of $2.38 trillion, according to data from Refinitiv.
The massive gains seen in the Aramco stock price come as the company has benefitted from a rise in oil prices and an efficient diversification program that has seen it earn from other crude oil derivatives via subsidiary companies. SABIC (petrochemicals), Saudi Aramco Total Refining and Petrochemical Company (SATORP) and the Sadara Chemical Company are just a few subsidiaries whose successes have helped power Saudi Aramco to its exalted status.
Technically speaking, the 2-day slide in the stock has followed the formation of a pinbar candle at the 46.25 resistance. The intraday bounce suggests that there is life in the bulls. The stock continues to retain significant headwinds from potential Russian oil curbs due to sanctions, OPEC’s demand forecast downgrade notwithstanding. The situation continues to boost bullish Aramco stock price forecasts.
Aramco Stock Price Forecast
The intraday decline got partially rejected via a strong bounce from the 43.92 support level (20 March high in role reversal). This bounce keeps the price within the range formed by the 46.25 price ceiling (9 May high) and the 43.92 floor. A break above the 46.25 ceiling lifts the stock to new 2022 highs, targeting potential resistance points at the 48.39 price mark (127.2% Fibonacci extension level) and the 141.4% Fibonacci extension level (49.48). An additional northbound target may also come in at the 161.8% Fibonacci extension level at 51.06.
On the flip side, a further correction in the Aramco stock price will follow a breakdown of the 43.92 floor, targeting 42.55 initially (3/14 April highs). A further decline violates this support level and opens the door towards 41.61 (2 March/27 March highs). Further price deterioration brings in 40.19, where the 21 February high and 17 March low are found. However, the sentiment on the stock remains bullish, and any dips could be seen as potential new buying opportunities.