Shell shares dip amid rising selling pressure

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Shell plc slides 2.01% today

Highlights

Shell halted its $3 billion share buyback to prioritize funding for an acquisition, shifting capital allocation strategy.
Solid upstream cash flow, strong LNG and marketing results, and stable 3.6% dividend yield underpin shares despite ongoing selling.
Technicals signal bearish momentum with Shell trading below key averages and a 62% likelihood of a move toward GBX2,752 support.

Robust cash flows and LNG gains support shares despite buyback pause

Shell paused a $3 billion share buyback as it redirected cash toward an acquisition. Shares remained well above their 52-week low and continued trading in the upper half of their recent range, supported by robust upstream cash flows and strong liquefied natural gas and marketing earnings. Dividend distributions persist with a recent yield of approximately 3.6%, and incremental revenue was recorded at the Prelude facility in Australia from carbon credit policies, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, views the suspension of the $3 billion buyback as a negative shift in capital discipline. He notes that persistent selling pressure and trading below all key moving averages indicate technical fragility in Shell’s shares. Kharitonov highlights the oversold momentum indicators as a warning, suggesting limited near-term upside. He sees continued downside risk as the company prioritizes acquisitions over direct shareholder payouts. "With bearish signals dominating the technical chart and shareholder returns taking a back seat, I see little to justify optimism at current levels," Kharitonov says.

Viktoras Karapetjanc, expert at Traders Union, believes Shell’s decision to channel cash into acquisitions signals forward-thinking capital allocation. He points to robust upstream cash flows and continued dividend yields as evidence that the bullish structure remains intact. Karapetjanc sees strong revenue streams from LNG and the new carbon credit policies supporting long-term growth. He expects further opportunity development as the company expands its asset base. "I view this temporary buyback pause as a strategic pivot that positions Shell for further growth and value creation," Karapetjanc states.

Jainam Mehta, market strategist, observes that selling momentum dominates, with Shell trading below its moving averages and technical signals remaining mixed. He notes the volatility band between GBX2,752 and GBX3,135 as a useful zone for tactical trades in the coming days. Mehta sees potential for a contrarian rebound if oversold conditions persist, particularly if price closes above GBX2,955. "Traders should watch for a potential breakout above resistance or a slide through key support for short-term setups," Mehta advises.

Bearish momentum prevails as oversold signals meet strong trend

Shell is trading below its 20-day (GBX3,141), 50-day (GBX3,210), and 200-day (GBX2,959) moving averages, signaling short-, medium-, and long-term headwinds from sellers. The nearest support is at GBX2,940 (week low), while resistance stands at GBX2,955 (today low), with the MA-50 vs MA-200 alignment leaving the long-term trend broadly bullish. Momentum indicators are mixed: MACD points to a downtrend, ADX signals trend strength, RSI at 36.74 and CCI at -121.37 both indicate oversold territory, and BBP at -73.74 confirms intraday seller dominance. Stochastic RSI and Awesome Oscillator remain neutral, underlining indecision after a steep daily decline.

Previously it was reported that Shell's stock faced persistent downside risk amid sustained technical weakness and market uncertainty. The current technical setup reinforces this bearish outlook, making the GBX2,940 support level critical to monitor in the days ahead for signs of continued volatility or a potential shift in momentum.

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

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