The BP share price continues to ride the waves provided by Hurricane Ida’s action in closing the Gulf Coast platforms and shutdown of 1.7million barrels of supply. This supply disruption has led to a 2% gain as of writing, putting BP share price in the top 6 of the FTSE 100’s gainers’ chart.
However, the ability of the stock to continue the ascent is now in jeopardy, as the hurricane dissipates and OPEC + meets to decide on continuing its planned 400,000 barrels increase in supply. With the Gulf Coast platforms also expected back on stream (barring another hurricane in a hectic storm season), the BP share price needs an extra push from the bulls to over the current resistance at 302p.
An exciting week of trading could be up ahead.
Monday’s upside move look set to test the resistance at 303.95. Bulls need to take out this level for 312.30 to come into the picture as a new target. A break of this level completes the double bottom formation, allowing for a further ascent towards 336.90 as the completion point of the measured move. To achieve this, bulls need to overcome the resistance barriers at 319.45 (5 May/21 June highs) and 328.75 (6 July high).
On the flip side, a rejection at 303.95 on an OPEC + supply increase could precipitate a decline towards the 3 August low at 296.10. If this low gives way, the price bottoms at 287.70 and 277.65 become additional downside targets.
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