This Monday, the Royal Dutch Shell share price has inched further upwards, buoyed by rising crude oil prices. The Royal Dutch Shell share price rose 1.22% on the day, hitting new multi-year highs. Natural gas is also posting new highs, and this is stoking heavy investor demand for oil stocks.
Reduced supply from Russia, earlier onset of colder temperatures and slow rebuilding of infrastructure shut by the pandemic or adverse weather conditions have combined to soaring natural gas prices. However, the sustainability of rising gas prices is questioned if squeezed companies seek alternative fuels. But for now, Royal Dutch Shell appears well placed for the extra revenues involved.
Shell Share Price Outlook
Monday’s break of the 1713.4 resistance clears the way for the bulls to push towards 1785.4. Above this level, 1833.4 lines up as an additional target to the north.
On the other hand, a corrective decline towards 1628.2 (38.2% Fibonacci retracement from the 20 September swing low to Monday’s swing high) follows a breakdown of 1713.4 and 1677.4 (8 October low). This move also sets up 1588.0 (29 September low and 50% Fibonacci retracement) and 1548.0 as additional targets to the south.