Will BP’s share price continue to decline?

BP Technical Analysis Summary

Buy Stop Above 385.35.

Stop Loss: Below 340.52.

Indicator Signal
IRS To buy
MACD To buy
MA(200) To buy
Fractals To sell
Parabolic SAR To sell

BP chart analysis

Technical analysis of the BP stock price chart on a daily time frame shows that #L-BP, Daily is moving back towards the 200-day moving average MA (200) while the RSI indicator has formed a bullish convergence. We believe the bullish momentum will continue after the price breaks past the last fractal high at 385.35. This level can be used as an entry point to place a pending buy order. The stop loss can be placed below the fractal low at 340.52. After placing the order, the stop loss should be moved daily to the next fractal low, following the signals from the parabolic indicator. Thus, we modify the expected profit/loss ratio to the break-even point. If the price reaches the stop loss level (340.52) without reaching the order (385.35), we recommend to cancel the order: the market has undergone internal changes which have not been taken into account.

Fundamental Stock Analysis – BP

BP shares fell slightly after a report that the company had no buyer for its Rosneft stake in Russia. Will BP’s share price continue to decline?

BP plc is a British listed multinational oil and gas company. It is one of the largest oil and gas companies in the world. The market capitalization of the company is £70.79 billion. BP stock is trading at a P/E (Trailing Twelve Months) ratio of 13.73. The company had a turnover of £156.43 billion (ttm) and a return on assets (ttm) of 2.37% and a return on equity (ttm) of 9.64%. BP announced on February 28 that it was immediately exiting state-owned Rosneft’s stake in Russia at a cost of up to $25 billion after the start of the Russian invasion of Ukraine. On Tuesday, BP executives confirmed that BP did not have a buyer for Rosneft’s stake. The share price fell 2.2% the day after the news. The company faces a major write-down as it will lose an important source of revenue: BP received a $640 million dividend from Rosneft last year, totaling $4 billion in dividends since 2013. The drop in profits is bearish for a share of the company. However, the technical setup is bullish for BP stock price.

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Karen J. Nelson