RDSB share price has given in to downward pressure and was on course for its third day in the red. At the time of writing, the share price was down by 1.22% over the previous 24 hours, to trade at 1,746p. The change in fortunes comes after a long period of sustained price rally with an uptrend stretching back to 20th September.
The current downward pressure on the Royal Dutch Shell share price is driven by a poor show in its Q3 earnings, which fell below expectations. Nonetheless, the company is betting on an ambitious emissions reduction program to turn around its fortunes in the long term. Some see this as a misprioritization of objectives and a paradoxical move coming from an oil giant.
Company at crossroads
Some critics have also termed the emissions target as a result of caving in to pressure rather than a profit-driven move. The company has recently adjusted its greenhouse emissions cut to more ambitious targets, following criticism of its previous targets. Under the plan, it hopes to cut by 50% its Scope 1 and Scope 2 emissions by 2030, with 2016 as the base year.
Oil and gas prices have boosted Shell’s profits, but it is being pushed great discomfort by those who are dissatisfied with its goals. The energy giant’s goal to maintain extracting oil and gas while embracing renewable energy would be jeopardized if Dan Loeb’s Third Point Capital succeeds in his calls to break up the company.
Technical analysis for RDSB share price
RDSB share price has recently broken out toward the lower side. The momentum indicators signal that the downtrend is likely to continue. The RSI has fallen from 79 to 57 in the last week and the indicator line is still heading downward at the time of writing. In addition, the MACD signal line has recently crossed above the indicator line, making a strong case for continued bearishness. Considering these factors, the RDSB share price is likely to find the first support at 1,710p and the second one is likely to be at 1,649p. Upward action is likely to be minimal, with the first resistance at 1,774p and the second one at 1,796p.
