BP (LON: BP) share price is experiencing bullish pressure, and the black gold driller’s shares are up 2.1% on Tuesday. The shares were trading at 488p at press time, only 0.7% below the 200 MA. The price attempted a breakout from the key trend line that I mentioned in my previous analyses.
The FTSE100 had a positive last week as the UK shares rebounded. The index rose was up 98 points today and stood 2.65% above its last weekly low. Crude oil prices showed signs of recovery, with the UKOil being 0.8% up on Tuesday. The rebound in oil prices is acting as a tailwind for BP shares.
In the B20 conference held in India, the CEO of BP announced the firm’s plans to invest $55-$65 billion into energy transition projects. BP also intends to invest in energy-based projects in India in the next few years. The CEO argued that such steps were necessary to counter the energy price hikes.
In other news, BP agreed to start drilling in four exploratory natural gas wells in Egypt in the fourth quarter of 2023. The drilling company is expected to bring around $3.5 billion into Egypt over the course of 3 years.
The latest analysis for LON: BP shows the price heading for a retest of the 200 MA on the daily chart. On 10th August, the price attempted a breakout but could not break through it. BT share price forecast will flip bullish if the bulls break out of the downward trrendline shown below.
If the bulls reclaim 200 MA, I expect another rally toward the April high at 545p. However, there is still a silver lining for the bears. The bears can target 465.65p as their target if the price gets rejected from 200-day moving average.
This post was last modified on Aug 29, 2023, 13:59 BST 13:59