BP (LON: BP) share price is behaving exactly as forecasted in our previous analysis. The shares of Brittain’s major oil company have rebounded strongly from their March lows. During this time, BP shares have surged by more than 15.35%. The technical analysis reveals that there is still more upside before the ongoing rally runs into resistance.
UK shares showed an overall positive price action on Wednesday as the FTSE 100 index gained 50 points. The benchmark index also hit its highest level in the four weeks, signaling an improved investor sentiment. BP share price UK also remained green and was up by 1% till press time.
The US CPI data for March 2023 has just been released today. The consumer purchase index (CPI) report showed a decrease in MoM and YoY inflation which is bullish news for the markets. During March 2023, the YoY inflation was recorded at 5.0%, which was less than the market expectation of 5.1%.
The FTSE 100 Index, which was already up by 50 points, gained another 10 points on the news. BP shares also gained a few points, but the price action largely remained unaffected by the US inflation data. The volatility is expected to remain high during today’s US session as the markets just themselves to the latest inflation data.
As mentioned in our last analysis, LON: BP chart shows a prolonged price action within an ascending channel. In March 2023, the price dipped below the bottom of the wedge but immediately clawed back in. This puts the probability of the shares hitting the top of the channel, which lies close to 560p.
The ongoing price rally was already predicted in my previous BP share price forecast. In that article, I predicted a 550p price target which is very close to being met. Before the 560p level, the price might also face some resistance from the 548p level, which is the 0.786 Fib retracement level.
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This post was last modified on %s = human-readable time difference 14:03