In 2020, BP PLC BP-N (Wednesday’s close US$35.34) declined from US$40.07 to US$15.51 (A-B), recovered to US$28.57 (C) and then returned toward the previous low (D).
In 2021, the stock rose above its 40-week Moving Average (40wMA – E) to reverse the negative trend and started an uptrend above a rising trendline (solid line). In 2022, it ran into resistance at US$34 (dashed line) but the recent rise above this level suggests a breakout and the resumption of the long-term uptrend (F).
Behaviour indicators including the rising 40wMA and the rising trendline confirm the bullish status. There is good support near US$32-33; only a sustained decline below this level would be negative.
Point & Figure measurements provide targets of US$42 and US$45. Higher targets are visible.
The Globe and Mail
Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart source: www.decisionplus.com
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