-4.13% for Shell stock as Atlantic Shores project $1B write-off adds pressure

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Shell drops 4.13% amid renewables exit

Highlights

Shell is exiting renewables, preparing to divest offshore wind assets in a move potentially raising over $1 billion.
Recent actions include selling its 50% SouthCoast Wind Energy stake and a $1 billion Atlantic Shores write-off, underscoring a firm pivot away from the sector.
Shell shares face strong short- and medium-term downward momentum, with high probability of further declines toward support at GBX3,011.19.

Renewables exit accelerates as Shell executes $1 billion wind divestment plan

Shell is undertaking a strategic withdrawal from renewables, as it prepares to sell its offshore wind assets in a divestment process that may raise over $1 billion, with Rothschild & Co. and PJT Partners Inc. advising, according to biggreenswitch.co.uk. This follows a series of completed actions, including the divestment of Shell’s 50% stake in SouthCoast Wind Energy off the Massachusetts coast in March 2024 and a $1 billion write-off on the Atlantic Shores project in New Jersey in October 2025. The company has also previously exited its European onshore renewables arm and the Indian firm Sprng Energy, cumulatively marking a consistent reduction of Shell’s renewables footprint and a shift in business focus away from the sector.

Bearish intraday signals intensify as SHEL tests resistance and oversold levels

On the H1 timeframe, SHEL has fallen below both the MA-20 at GBX3,222.26 and MA-50 at GBX3,222.14, while remaining above the MA-200 at GBX2,948.00. The Ichimoku Kijun indicator provides immediate resistance at GBX3,192.25. Momentum is predominantly bearish, with MACD and ADX both producing Sell signals. The RSI stands at 29.39, and Stoch RSI, CCI, and BBP all read oversold or in sell territory, confirming clear intraday seller dominance. The Awesome Oscillator remains neutral and does not confirm the current trend. Today's price closed near the session low after a negative opening gap, with moderate overall volatility and no notable divergence from oscillator readings.

Consolidation likely as downside risk dominates short-term trading range

Over the next two to three sessions, SHEL is likely to trade within a volatility band between GBX3,011.19 and GBX3,271.25. There is a very high probability of continued downside, while upward movement remains much less likely. The baseline scenario forecasts price consolidation within this corridor, barring a decisive break above resistance at GBX3,192.25 for a bullish move or below support at GBX3,011.19 for further declines.

Viktoras Karapetjanc, Traders Union expert, sees Shell’s retreat from renewables as a decisive macro and fundamental shift. He believes the ongoing divestments reinforce a pivot in capital allocation and signal renewed focus on Shell’s traditional business lines. Despite short-term weakness and strong bearish momentum, the stock’s position above long-term support offers some resilience. Sentiment around Shell is likely to recover if the company executes its asset rebalancing smoothly. "If Shell’s management remains clear in its capital strategy, I expect confidence to return as the market adapts to its new direction."

Earlier, analysts noted that Shell shares were experiencing short-term selling pressure despite a broader long-term uptrend, with momentum indicators displaying conflicting signals. The latest retreat beneath key moving averages, coupled with a sustained bearish momentum and continued asset divestments, increases the likelihood of a decisive move below GBX3,011.19, which would expose Shell to further downside risk in the near term.

Source of Data: SHEL Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.