Is it irrelevant, or will the Upgrade make the Shell share price more attractive?

• Societe Generale upgrades to Buy with a target of 2910p.
• Consensus: 13 Buys, 5 Holds, 1 Sell; Avg target: 2851p (Source: Bloomberg).
• Current share price 2455p (at time of writing).
• Will the shares turn back, or will the upgrade push them towards 2716p Oct highs?
• Shares -4.4% from 2019 highs; +10.3% from 2019 lows; +5% year-to date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Shell – An Example

Let’s say you think that Shell shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Shell using a CFD, at the current price of 2455p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Shell share price rises to 2716p Oct highs (+10%). Your profit would be £1000 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Shell shares fall 3% and hit your stop-loss. Your loss would be £300.

This is provided for information purposes only. It should not be taken as a recommendation.