BP (BP) could be a triple bullish threat -- the price of crude oil is still going up, the charts and indicators of BP are bullish and the stock was upgraded today to a buy by TheStreet.com's quantitative service. Let's check out the charts to see how bullish we should be.
In this updated daily bar chart of BP, below, we can see that the price of BP has been trending higher from its July/August lows. There is a good downside correction in February and March to just above the rising 200-day moving average line. Today BP is above the rising 50-day line and the 200-day line. The daily On-Balance-Volume (OBV) line has been rising since August and recently made new highs to confirm the price advance. Buyers of BP have clearly been more aggressive than sellers. The Moving Average Convergence Divergence (MACD) oscillator is well above the zero line in a bullish configuration.
In this weekly bar chart of BP, below, we went back to 2013 or five years to show the scope of the reversal and base pattern. Prices are above the rising 40-week moving average line. The weekly OBV line has been rising since early 2016. The MACD oscillator is bullish on this longer time frame.
In this Point and Figure chart of BP, below, we can see an upside price target of $60.
Bottom line: Sometimes BP has made shallow corrections like in November and sometimes they have been deep like in February. If BP corrects now it is likely to be shallow. Why bring this up? I want to recommend going long BP but I don't want to experience a sharp draw down. Traders could go long BP at current levels and on a dip towards $46. If there is no dip then add above $48. Risk to $44 for now looking for gains to around $60.