I last looked at the charts of the oil giant BP Plc (BP) back in May, noting that "Traders could go long BP at current levels and on a dip towards $46." BP dipped in May and June and July but support has appeared around $44 each time. It looks like BP wants to turn higher. Let's drill down further.
In the updated daily bar chart of Action Alerts PLUS holding BP, below, we see a mixed pattern to our favorite indicators. Prices are below the slightly declining 50-day moving average line but a rally above $46 will put BP back above that line. The slower 200-day line is still rising and intersects around $42.
The daily On-Balance-Volume (OBV) line has been steady to rising the past three months and is considered by me to be bullish. The Moving Average Convergence Divergence (MACD) oscillator is holding on the zero line and could turn up or down with the price action in the next few days.
In this weekly bar chart of BP, below, we can see a longer-term uptrend still in force. Prices are above the rising 40-week moving average line. The weekly OBV line was steady in May and June and shows only a minor dip this month.
The MACD oscillator has crossed to the downside for a take profits sell signal but another strong rally could reverse that signal.
In this Point and Figure chart of BP, below, we can see a longer-term upside price target of $57 and that a rally to $48 will be an upside breakout.
Bottom line: Continue to hold longs in BP and consider adding to that position on strength above $48 looking for gains to $57 or higher in the months ahead.