The Shell share price continued its bullish trend in May after the company made progress in multiple areas. As a result, the stock rose to an all-time high of 2,415p, which was substantially higher than April’s low of 2,040p. In total, the stock has jumped by more than 42% in 2022, making it one of the best-performing stocks in the FTSE 100. Other energy supermajors like Chevron, BP, ExxonMobil, and Marathon Oil continued rising.
Shell, formerly known as Royal Dutch Shell, is a leading oil and gas company with operations worldwide. The company invests its money in most countries’ upstream, midstream, and downstream operations. Some of its leading operations are in the Gulf of Mexico, Canada, Appomattox, Gumusut-Kakap, and Perdido, among others.
Shell made a lot of progress in May. For example, it announced that it will develop its Crux project in Western Australia, which is a large natural gas operation. The company also completed the sale of its Russian operations to Lukoil, one of the biggest players in the country. But, most importantly, the firm announced the start of production at FPSO Guanabara in Brazil and its decision to acquire Sprng Energy Group.
Shell also announced results for the first quarter. Its adjusted earnings rose to $9.1 billion while its dividend rose by 4% to $0.25. In addition, the firm announced that it had continued with the $8.5 billion buyback program while the company took a $3.9 billion charge for its Russian exit.
Shell share price seems like a good buy since oil and natural gas prices are expected to keep rising during the month. But, most importantly, the company will benefit from the surging natural gas prices in the coming months.
The four-hour chart shows that the Shell stock price has been in a strong bullish trend in the past few months. A closer look shows that the 25-day and 50-day moving averages have supported the shares. Notably, it has formed a rising wedge pattern, which is usually a bearish sign. The pattern is usually a bearish sign.
Therefore, while the fundamentals are positive, technicals are less supportive of the stock. As such, there is a likelihood that the stock will decline sharply in June since the wedge is nearing its confluence level. If this happens, the next key support to watch will be at 2,250p. On the flip side, a move above the resistance at 2,425p will invalidate the bearish view.
This post was last modified on %s = human-readable time difference 09:37