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Shell Share Price Analysis: Time to Buy the Dip?

Briefly –

  • The last few weeks saw Shell’s share price recording a sharp drop.
  • The plunge matched the latest oil prices decline.
  • Shell will announce strong quarter outcomes this week.

Shell (LON: SHELL) share saw its price declining sharply within the last few weeks amid pullbacks in natural gas and crude oil prices. Meanwhile, the stock has retraced from 2,460p ATH to the current 2,025p, translating to about 148 billion in market capitalization.

Shell Results Ahead

Shell share has seen massive bearish bias as investors remained concerned about the plummeting gas and oil prices. Crude oil declined from the $136 YTD to the $97 low. Also, WTI (West Texas Intermediate) moved beneath the $100 crucial mark.

Moreover, natural gas prices pulled back despite Europe facing massive supply shortages. Meanwhile, investors expect natural gas to stay at higher zones for the coming year, benefiting Shell, the leading natural gas firm.

The share stock will remain in the headlines as Shell will reveal its earnings this week. Experts expect the firm to announce strong outcomes as prices and demand remains higher in 2022’s first half. Financiers expect Shell’s earnings in the gas unit climbed from $1.6B to above $3.8 billion.

They expect the upstream earnings to hike to $4.38 billion from $2.5 billion, whereas market earnings hit $997B. Moreover, experts predict that chemical products increased to $1.8 billion from $989 million.

Meanwhile, analysts trust Shell is a lucrative investment, assigning the stock a 2,806 average target. Some hawkish experts come from JP Morgan, Barclays, Credit Suisse, and BOC (Bank of Canada). All these experts believe Shell’s share will touch 3,000p soon.

Shell Share Price Prediction

The 4hr chart shows Shell share printed a climbing wedge set up from March to May 2022. Remember, rising wedges are bearish signals in price action evaluation. Bearish breakouts emerged in June when SHELL climbed to the 2,460 highs.

Meanwhile, it has dropped by over 16% from this year’s highest mark. The stock moved beneath the 25- and 50-day MAs. Thus, the share will likely extend downward, with sellers targeting the crucial support floor at 1,900p, the lowest mark since March.

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