Fundamental Analysis
BP’s stock price surged 1.3 percent as the company reported better than expected earning results. The results showed higher profits and lower sales than estimated. The company reported a profit of 19 pence a share versus the estimate of 14 pence. This is despite the fact that the sales number were lower (794.7 million pounds) versus the (836.0 million pounds)estimate.
In the previous session, it’s stock price increased to 535.20 pence from 528.10p. In addition to this, the trading volume was almost the same as the 20-day average.
BP trades at 12.0 times trailing 12-month earnings per share and 12 times its estimates for the coming year.
Technical Analysis
BP’s price is trading near the 50-day moving average (shown in yellow) on a 4-hour time frame. The price is likely to break above the 50-day moving average but the next challenge will be the 100-day moving average shown in green. If the price is able to break both the 50 and 100-day moving average, this will confirm that there are higher chances that the price would continue its move from there onward. However, a failure to break the 100-day moving would likely to push the price lower. It is also important to keep in mind that when the price will be near the 100-day moving average, it will also be entering in a critical area of consolidation (shown by the rectangle box).
The Balance of Power and the Relative Strength Index are both showing that the bulls have the control of the price and it is likely that the current momentum may continue.
The support zone is shown by the green horizontal line and the resistance zone is shown by the red horizontal line.
