BP share price is tanking today after the company released relatively weak financial results. It has dropped by more than 3%, becoming the worst-performing company in the FTSE 100.
BP latest news: Things did not go well for BP, one of the world’s biggest oil supermajors. While the price of crude oil rose in the fourth quarter, its profitability declined. In total, the overall profit declined by 96% to $115 million. This was substantially lower than the expected estimate of $370 million and the prior year’s $2.6 billion. For the full year, BP made a loss of $5.7 billion, down from a profit of $10 billion in 2019.
Focus now shifts to Royal Dutch Shell, ExxonMobil, and Chevron that will publish their earnings this week.
On Friday, I wrote my BP share price forecast, which you can view here. In it, I predicted that the company’s shares would drop to 260p.
This is what happened today after the company released its weak results. The stock dropped to 257p, the lowest level since January 5. It has dropped by more than 17% from the year-to-date high of 312p.
On the daily chart, we see that the BP stock is at the 38.2% Fibonacci retracement level. Notably, it has moved below the 50-day and 100-day exponential moving averages. Therefore, it seems like bears are in total control, meaning that they will likely start focusing on the 23.6% retracement at 232p.
However, we should not rule-out a climb to 286p, which will be the right shoulder of the head and shoulders pattern.
