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BP Plc Shows No Technical Signs Indicating High Risk

Summary

BP plc fell by -0.04% in the last day from $44.53 to $44.51 and has now fallen 3 days in a row.

BP plc lies in the middle of a falling trend in the short term and further fall within the trend is signaled.

BP plc holds sales signals from both short- and long-term moving averages. In addition, there is a general sales signal from the relation between the two signals where the long-term.

Industry: Major Integrated Oil & Gas Sector: Basic Materials Exchange: NYSE

BP engages in energy business worldwide. It operates through three segments: Upstream, Downstream, and Rosneft. The Upstream segment is involved in the oil and natural gas exploration, field development, and production; midstream transportation, storage, and processing; and marketing and trading of liquefied natural gas (NYSEMKT:LNG), biogas, power and natural gas liquids (NYSE:NGLS). This segment also engages in the ownership and management of crude oil and natural gas pipelines; processing facilities and export terminals; and LNG processing facilities and transportation, as well as in NGLs processing business.

BP plc Technical Stock Analysis

BP plc fell by -0.04% in the last day from $44.53 to $44.51 and has now fallen 3 days in a row. The price has fallen in 6 of the last 10 days and is down by -1.9% for this period. Volume has increased in the last day by 0.03 million shares, but on falling prices. This may be an early warning and the risk will be increased slightly for the next couple of days. In total, 5.30 million shares bought and sold for approximately $235.81 million.

Trend

BP plc lies in the middle of a falling trend in the short term and further fall within the trend is signaled. Given the current short-term trend, the stock is expected to fall -2.43% during the next 3 months and, with 90% probability hold a price between $42.48 and $45.77 at the end of this period.

Signals

There are few to none technical positive signals at the moment. BP plc holds sales signals from both short- and long-term moving averages. In addition, there is a general sales signal from the relation between the two signals where the long-term average is above the short-term average. On corrections up there will be some resistance from the lines at $44.59 and $45.34. A break-up above any of these levels will issue buy signals. A sales signal was issued from a pivot top point on Wednesday July 25, 2018, which indicates further falls until a new bottom pivot has been found. Volume rose on falling prices yesterday. This may be an early warning and the stock should be followed more closely.

A buy signal from a double bottom formation was found on Wednesday July 18, 2018 and based on theory for this formation the price should go up by 4.91% to $49.15 within 16 trading days since signal was issued (Thursday August 09, 2018).

Relative Strength Index (

RSI

)

RSI14 is 31 and the stock is currently not being overbought or oversold.

Support & Resistance

BP plc finds support from accumulated volume at $44.43.

Risk

This stock is usually traded at good volume, and with minor daily changes the risk is considered to be low. During the last day, the stock moved $0.42 (0.94%) between high and low. For the last week, the stock has had a daily average volatility of 1.27%.

Recommended stoploss: I hold a sell evaluation for this stock. No stop-loss set.

Overall risk: Low 

Evaluation

BP p.l.c. holds several negative signals and is within a falling trend, so I believe it will still perform weakly in the next couple of days or weeks. I therefore hold a negative evaluation of this stock.

The Downstream segment refines, manufactures, markets, transports, supplies, and trades in crude oil, petroleum, and petrochemical products and related services to wholesale and retail customers. It offers gasoline, diesel, and aviation fuel; lubricants, and related products and services to the automotive, industrial, marine, and energy markets under the Castrol, BP, and Aral brands; and petrochemical products, such as purified terephthalic acid, paraxylene, acetic acid, olefins and derivatives, and specialty petrochemical products.

The Rosneft segment engages in the exploration and production of hydrocarbons, as well as jet fuel, bunkering, bitumen, and lubricants activities. This segment also owns and operates 13 refineries in Russia; and approximately 2,960 retail service stations in Russia and internationally. The company also produces ethanol, bio-isobutanol, bio-power, and solar energy; transports hydrocarbon products through time-chartered and spot-chartered vessels; and holds interests in 14 onshore wind sites with a generation capacity of 1,432 megawatts through wind. BP p.l.c. was founded in 1889 and is headquartered in London, the United Kingdom.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.