Shell share price was in the green earlier on Thursday amid a rebound in oil prices. At the time of writing, the stock was trading 1.20% higher at 2314p. However, the stock is yet to recover from its 3.46% plunge earlier on Tuesday.
Oil Prices are Rebounding
Shell share price has been under intense pressure for the past few days amid a steep decline in oil prices. Oil prices started the year down by more than 9%, the worst yearly start since 1991. The potential global recession and the short-economic signs in the world’s two biggest consumers, China, and the United States, saw the oil prices dip.
However, oil prices rebounded on Thursday as investors took the opportunity to buy futures in hopes that oil demand will be steady in the long term. As of the time of writing, Brent crude oil was trading 2.25% higher at $79.63 per barrel, while US West Texas Intermediate (WTI) crude oil was up by 2.48%, settling at $74.66 per barrel.
The European stock market will be reacting to the UK Composite and Services Purchasing Managers’ Index (PMI) for December. According to the data released by Markit Economics, the UK service sector remained inside contraction territory, but only towards the end of 2022.
According to the survey by S&P Global, inflation remained the dominant theme in December. Most firms reported a substantial and elevated increase in operating costs throughout the month.
Shell Share Price Analysis
The daily chart shows that the Shell share price has been under intense pressure for the past few days as the stock lacks a directional move. The stock is moving slightly below and above the 50-day and 200-day exponential moving averages, respectively. Its Relative Strength Index (RSI) is below the neutral level at 47.
Therefore, the Shell stock price is likely to continue with its struggle to find direction in the short term. Bulls need to gather momentum to push the price past the key resistance level at 2457.5p. A move below the crucial support at 2238.5p will have sellers eyeing the support at 2002p.