BP (LON: BP) share price is hanging by a thread after a strong rally at the start of this year. The shares of the petroleum giant are currently retesting a critical support level and a failed retest will put the likelihood of a major drop in the coming months.
On Monday, the UK stock market depicted a positive sentiment. The benchmark FTSE 100 index turned green after tumbling at the start of this week, and the index was up 5 points till press time. BP shares also opened slightly higher today and were up 1.28%.
As per the most recent BP plc news, the British oil giant has finally reached an agreement with a Danish energy company, Ørsted, about a project overlap between the two companies in the North Sea. Consequently, BP has withdrawn all previous objections related to the Hornsea Four Development Consent Order application.
The energy giant has won a tender to handle 2 million cubic meters of gas annually at Rotterdam’s Gate terminal. PetroChina International will also get access to the same terminal. This will be the first time that a Chinese company has been granted this type of access in Europe.
The following LON: BP chart reveals that the price has formed a head & shoulders pattern on the daily chart. The neckline of this pattern currently lies at 467p. The share appears to have confirmed the breakdown from the trendline last week. The last line in the sand is the 456p support level where the stock is currently trading.
The technical analysis reveals that BP share price forecast will become extremely bearish if the stock breakdowns below the 456p level. The technical target of this bearish push will be 362p which lies more than 20% below the current price.
In the meantime, I’ll keep sharing updated BP stock price forecasts and my personal trades on my Twitter where you are welcome to follow me.
This post was last modified on Jun 21, 2023, 13:14 BST 13:14