Royal Dutch Shell Share Price Rebounds, But There’s A Catch
Royal Dutch Shell (LON: SHEL) share price turned green on Tuesday after a sell-off on Monday. However, the technical analysis points towards a major bearish move that no one is discussing. In this article, we’ll be discussing this move in detail.
After a 0.40% gain on Monday, shares of Royal Dutch Shell plc rose 0.34% on Tuesday. The positive price action comes amid a correction in global oil prices as investors anticipate ease in the tightening supplies. Till press time, Brent Crude and WTI both were down 0.51%.
Shell Stock Decouples From Oil Prices
In the past few months, Shell shares have shown a decreased correlation to the crude oil price. While oil prices are down 0.88% since the start of this week, Royal Dutch Shell shares is up 0.72%. However, technical analysis reveals that bears are still very much in the game.
The shares of the British oil giant had a pullback after the release of its Q2 earnings. The financial results revealed a sharp profit drop in the second quarter due to weak commodity prices. The latest analysis suggests the shares must break above a key moving average to avoid a bearish outlook.
Royal Dutch Share Price Forecast
The following LON: SHEL share price chart depicts that the price has been trading within the 1960p-2460p range since June 2022. Despite multiple attempts, the price has failed to break out from the top of this range. The daily chart also reveals that the price has broken below the 200 moving average.
If it fails to reclaim 200 MA soon, Royal Dutch Shell share price forecast will flip very bearish. In this scenario, the first target for the bears would be the range mid of 2170p, which is around 8.25% below the current price.
In the meantime, I’ll keep sharing updated Shell stock analysis and my personal trades on my Twitter, where you are welcome to follow me.