BP share price appears to be finding some relief after suffering a notable 16.55% correction from its October levels. This correction was primarily driven by the decline in oil prices as markets predict the tensions to deescalate in the Middle East.
The shares of the British oil and gas company seem to have shrugged off the negative sentiment that enveloped the UK stock markets. The FTSE lost over 100 points on Friday after the latest data indicated the failure of the UK economy to expand its output in the third quarter, narrowly avoiding the start of a recession.
BP shares have been on the rise for the second consecutive day, thanks to the recent rebound in oil prices. Over the past two days, the shares of the British oil and gas company have gained 2.5%. This bounce in the share price comes precisely from the 465p support level which was highlighted in my previous analysis.
If the ongoing rally in the oil prices materializes in a bullish reversal, then BP share price can potentially retest a key psychological level of 500p. This level is crucial as it closely aligns with the 200-day moving average (200 MA), making it a critical level for the bulls to keep an eye on.
This post was last modified on Nov 10, 2023, 16:34 GMT 16:34