BP plc (BP) reported its latest earnings figures Tuesday morning. The stock is indicated to open higher. Let's check out the charts and indicators and see if we want to fill up on this energy play.
In this daily bar chart of BP, below, we can see a strong rally from August. There was a shallow correction in November and a deeper one in February and March, but now prices are at new highs for the move up. BP is above the rising 50-day moving average line and the 200-day line.
The correction in February and March tested the 200-day line a number of times but in hindsight these tests were buying opportunities.
The daily On-Balance-Volume (OBV) line has been moving up since August, telling us that buyers of BP have been more aggressive. The OBV line is close to making a new high for the move up to confirm the advance.
The Moving Average Convergence Divergence (MACD) oscillator is in a bullish mode above the zero line and in new high ground looking back over the past 12 months.
In this weekly bar chart of BP, below, I went back four years instead of three to show the size of the reversal pattern or base pattern. Strength above $44 is a breakout. Prices are firmly above the rising 40-week moving average line.
The weekly OBV line has been bullish since early 2016. The MACD has just crossed to the upside for a new outright go long signal on this time frame.
In this long-term Point and Figure chart of BP, below, we can see that $42 was an important upside breakout. An initial upside price target of $51 is being indicated. Targets of $55 and $60 can also be derived.
Bottom line: BP is pointed higher and if you are looking to add some energy to your portfolio I think it's a good choice. Traders should consider buying BP on strength above $45 or on any dip toward $44 if available. Risk to $42 looking for gains to $51 and then $55.