Shell's share price looks broken

Events in the Middle East, and anticipation of what might happen, continue to affect both the price of oil and sector share prices. Independent analyst Alistair Strang assesses the situation at this major player.

29th October 2024 07:43

by Alistair Strang from Trends and Targets

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Shell (LSE:SHEL)'s share price has become a little messy, the price needing to close a session above 2,642p to escape the immediate shambolic behaviour.

To be fair, the price is mimicking the cost of crude oil, behaving like a Golden Retriever who wants to go out, so she can want to come in again. Brent crude wants to go down, yet continues to fall into any sort of logical trap as the markets feel determined not to be caught out by a crisis in the Middle East.

To be blunt, it’s all starting to feel a bit like Ukraine, a global situation where the world has essentially grown bored with what’s going on.

If we pretend optimism, Shell's share price closing a session above 2,642p should be important, potentially triggering share price recovery to an initial 2,800p with our secondary, if bettered, at an unlikely 3,048p and a new high.

More probable, if things intend to go wrong, below 2,400p should next trigger reversal to an initial 2,261 with our secondary, if broken, at 1,959p and hopefully a rebound.

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Source: Trends and Targets. Past performance is not a guide to future performance.

Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.

Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea. 

These articles are provided for information purposes only.  Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties.  The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

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