Shell Share Price Forecast After Positive JP Morgan Note

Summary:

In this Shell share price forecast, we look at what to expect after the relatively positive note by analysts at JP Morgan

The Royal Dutch Shell share price held steady after a relatively positive statement by JP Morgan. The stock rose to 1,400p, which was 5% above the lowest level yesterday. Other oil stocks also rose as the price of crude oil maintained an upward momentum.

Shell news. In a note published on Monday, analysts at JP Morgan said that they were optimistic about European oil and gas giants like Shell, BP, and Total as oil prices surge. They also expressed their hope that the companies should do more to return cash to shareholders through dividends and buybacks.

The analysts said that Royal Dutch Shell could boost its buybacks by about $500 million in the second half. This will then increase by $4.4 billion in 2022. This note came a few days ahead of Shell’s trading statement. Also, it came as the company deals with the ruling that it should lower its carbon emissions by 45% by 2030.

Shell share price outlook

The four-hour chart shows that the RDSB share price has been in a tight range recently. The stock is also about 8% below its highest level this year. Further, it has moved above the 25-day and 15-day exponential moving averages (EMA) and the important resistance at 1,390p.

Notably, the shares have formed a head and shoulders pattern. Therefore, while the stock may keep rising in the near term, we can’t rule out a situation where it retreats in the longer term. However, a move above the right shoulder at 1,458p will invalidate this trend.