Will Shell stock break GBX3,409 resistance as earnings report nears?

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Shell gains 1.7% after divestiture

Highlights

Shell will sell Sprng Energy, its Indian renewables arm, to Aditya Birla Renewables for $1.8 billion, unlocking capital and focusing its portfolio.
The divestment and Shell's upcoming July 30 earnings report will offer investors further clarity on capital allocation amid current oil market dynamics.
Shell’s shares show a strong bullish structure across all timeframes, with momentum indicators overbought and prices expected to range between GBX2,914 and GBX3,409 short term.

Portfolio realignment and capital unlock as renewable unit sale advances

Shell has agreed to sell its Indian renewable energy business, Sprng Energy, to Aditya Birla Renewables for $1.8 billion, a transaction that unlocks capital from non-core operations and is expected to enhance the firm's balance sheet and strategic focus, according to Bloomberg. This divestiture reflects Shell's ongoing efforts to streamline its global portfolio and redeploy resources to core businesses. Additionally, Shell is scheduled to release its next earnings report on July 30, which, as noted by Asktraders, may offer further insight into the evolving impact of current oil market conditions. The sale and upcoming financial disclosure shape investor expectations and reinforce Shell's active capital management.

Persistent buyer dominance indicated as momentum sustains above key support

On the hourly chart, SHEL has cleared the MA-20 at GBX3,064 and MA-50 at GBX3,036, with the price also well above the long-term MA-200 at GBX2,981. The Ichimoku Kijun level now serves as immediate support at GBX3,092. Momentum indicators including the Moving Average Convergence Divergence (MACD), Average Directional Index (ADX), and Awesome Oscillator confirm ongoing buying pressure. Overbought signals are evident across the Relative Strength Index (RSI), Stochastic RSI, Commodity Channel Index (CCI), and Bull/Bear Power, all of which show persistent buyer dominance, while the absence of meaningful divergence points to sustained momentum.

Bullish scenario favored as volatility range contains risk

In the short term, SHEL is likely to fluctuate within a GBX2,914 to GBX3,409 volatility band relative to current levels over the next two to three trading days. The probability of an upward move remains very high, with a low likelihood of a downside break. Continued sideways movement within this range is the base case, but a clear bullish scenario may unfold if resistance levels are overcome, while a bearish scenario would require a breakdown below immediate support.

Anton Kharitonov, expert at Traders Union, sees Shell's stock supported by both active capital management and strong technical momentum. He notes that the sale of Sprng Energy provides short-term liquidity but urges caution given overbought technical signals. The analyst remains focused on whether support at GBX3,092 can hold in the coming sessions. "Base case remains sideways within the GBX2,914–GBX3,409 range — I stay defensive unless immediate support fails."

In a recent review, analysts highlighted Shell's near-term bullish momentum but cautioned that persistent overbought signals warranted close monitoring for a potential shift in direction. With the latest divestiture and ongoing technical strength, investors should closely watch for any sustained breakout above short-term resistance, as this could trigger renewed upside beyond current expectations.

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.