A strong surge in crude oil prices has once again led to a strong bounce in the BP share price. The daily chart suggests that it appears to be bottomed out as bulls target higher price targets. However, the outlook may change after the upcoming OPEC+ meeting.
The cartel of oil producing companies is set to meet on 26 November amid a weakening demand across the globe. According to the latest reports, OPEC+ is considering deeper cuts to keep the oil prices elevated in the coming months.
Consequently, BP stock gained 4.35p on Monday and was up 0.91% till press time. Shares for the other major energy giants also experienced increased buying pressure as the investors loaded their bags before the upcoming meeting.
The significance of the 465p level is evident once again from the following BP share price chart. The current bounce is also supported by the bullish divergences on the RSI and MFI indicators. As a result, the most likely scenario seems to be a retest of the 510p in the coming weeks.
I will keep sharing my updated outlook on BP via Twitter.
This post was last modified on Nov 28, 2023, 16:07 GMT 16:07