Shell Share Price Next Price Level as Prices Drop by 13% in 10 Days

Summary:
• Shell share price has plummeted in the past few days, losing 13 percent of its value. However, the drop may be a price correction

The past few weeks have seen Shell’s share price plummet. Since June 9, the prices have dropped by 13 per cent. The prices are also looking aggressively bearish, and it is possible we will see another aggressive push to the downside. 

Why is Shell’s Share Price Dropping?

For almost two years, Shell’s share price has been in an aggressive bullish move, rising from trading at 845p on October 27, 2020, to reaching a price high of 2459p in the early morning of the June 9 trading session. However, since then, the prices have become aggressively bearish. This has resulted in a 13 per cent drop since then.

The current price drop, however, may not be a signal for the start of a bearish move. Based on recent price action, Shell’s share price may have entered a price correction after months of an aggressive bullish trend. Despite the recent unfavourable economic factors in the UK that have seen the country record its highest inflation rate in decades due to the rising cost of fuel. The oil prices have also gone up. The oil demand has also gone up. These two factors are likely to see Shell continue to increase its revenue. Therefore, the current price drop is temporary, and the bullish trend is likely to continue. 

Shell Share Price Analysis

Today’s trading session has seen Shell’s share price drop by a percentage point. Currently trading at 2119p, the share price is also looking aggressively bearish, and there is a high likelihood that we will see the prices close lower.

However, despite today’s price drop, I expect the prices to resume the bullish trend in the next few trading sessions. This is because the current price drops result from price corrections and are not a trend reversal. Therefore, I expect the prices to hit the recent price highs of 2459p in the next few trading sessions, as the market will recover. 

However, my bullish trend analysis will be invalidated if the UK’s economic situation worsens with fears of recession looming. Such an environment will see Shell prices start to plummet even further and enter a bearish market.

Shell Daily Chart