With Shell Share Price at 2,296p, Is it Still a Good Buy?

Summary:
• Shell share price has been in a slow upward trend in the past few weeks as investors focus on the on the recent management changes.

Shell share price has been in a slow upward trend in the past few weeks as investors focus on the on the recent management changes. The stock is also reacting to the recent trends in the energy market as oil and gas prices remain in a tough spot amid recession fears. It was trading at 2,296p on Monday, which was slightly below this month’s high of 2,396p.

Is Shell a good buy?

Shell, formerly known as Royal Dutch Shell, is a leading energy and chemicals company that has operations around the world. The company has a leading role in upstream, midstream, and downstream operations. Notably, its business is a highly diversified company. For example, Shell is one of the biggest oil and gas traders in the world, where it competes with companies like Glencore and Vitol.

Shell is also a leading company in the petrochemicals industry where it produces key ingredients of popular items like plastics. Its chemicals producs include olefins, ethylene oxide, aromatics, nonene, and phenol among others.

A key catalyst for the Shell share price is the recent decision by Ben van Beurden to step down as the company’s CEO. He will be replaced by Wael Sawan, who is the company’s head of its integrated gas, renewables, and energy solutions. 

Shell share price also reacted to the performance of oil and gas. Crude oil prices have pulled back recently, with Brent and West Texas Intermediate (WTI) trading at $91 and $84, respectively. Still, these prices are substantially higher than where they were a few years ago. This means that the company will continue doing well in the coming months. 

Natural gas prices have also continued rising as demand jumps. Shell is one of the biggest natural gas companies in the world. As such, analysts believe that the company has more room to boost its dividends since its payout ratio is substantially small.

Shell share price forecast

The daily chart shows that the Shell share price has been in a strong bullish trend in the past few months. In this period, the stock has moved above the ascending trendline shown in black. It has also jumped above the 25-day and 50-day moving averages while the Relative Strength Index has pointed downwards. 

The stock will likely continue rising as bulls target the next key resistance point at 2,456p, which was the highest point on June 9. A move below the support at 2,200p will invalidate the bullish view.