Chicago, US - Jul 18, 2018: BP or British Petroleum gas station in summer day. British Petroleum is a British multinational oil and gas company
Despite its net profits beating expectations in the third quarter of 2021, BP share price has struggled to find momentum. In the aftermath of the November 2nd earnings release, the shares fell for two consecutive days before recovering.
It still seems as though investors are still weighing their options whether to keep taking profit or hold on to their shares for a potential rally. That is likely to result in choppiness in the market. At the time of writing, in the first hour of trading, BP shares were down by 0.9% and trading at 344.7p. The 350p’s have proven unstable for BP since 21st October, and the trend has been generally declining.
The company’s impressive Q3 results were attributed to rising fuel prices. That is unlikely to change soon as the demand for oil rises with the world steadily returning to normal economic productivity. The price of crude is currently about 60% higher year-to-date. However, this year’s winter demand may be significantly lower than last year’s, if the “warmer winter” forecast by the US National Oceanic and Atmospheric Administration is anything to go by.
Technical analysis for BP share price
The BP share price momentum has mild strength. That is likely to lead to marginal movements in either direction. The RSI is currently at 49, and if the bulls sustain the buying momentum, the price could rise to 350.5p. Beyond that point, the next resistance is likely to be at 357.35p.
On the other hand, the signal line is above the MACD indicator line. This signals a possibility of bearishness taking control. In that case, the share price could decline to the first support at 334.67p and possibly to the second support at 324.40p.