The Royal Dutch Shell share price is trading lower this Monday, tracking the fall in crude oil prices as concerns for 2022 demand mount amid the rapid spread of the Omicron variant of the coronavirus.
As risk-off sentiment pervaded the markets on Monday, the biggest losers in the equities market were stocks tied to risky assets such as crude oil.
Crude oil prices fell on Friday and Monday and adding to the depressed sentiment was the statement by moderate Democrat Senator Joe Manchin, who said he would not vote in favour of US President Joe Biden’s Build, Back, Better $1.75 trillion domestic investment bill.
The RDSB share price is down 1.83% as of writing, 90 minutes into the New York session.
The intraday decline comes off the failed attempt to close the downside gap. This attempt met resistance at the 1587.0 mark, which was previously a support landmark until the bearish gap took it out. This allows the bears to push towards the 1521.6 support, but only if the price closes below the 26 November and 30 November candles. 1459.8 and 1415.4 are additional targets to the south, which could become relevant if the correction deepens.
On the flip side, the bulls need to break 1587.0 and the ascending trendline to curtail the drop. A break of 1628.2 ensures a passage towards the 1682.8 price mark. 1713.4 and 1785.4 are additional targets to the north.
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This post was last modified on Dec 20, 2021, 16:56 GMT 16:56