BP (LON: BP) share price UK is having another volatile month as the price rebounds from the monthly lows. Despite a 9% bounce, the shares are still 17.8% down from their YTD high. BP plc remains one of the biggest beneficiaries of the recent increase in oil prices.
On Wednesday, most UK shares are having a green day after a major correction in this month. During today’s trading session, the benchmark FTSE 100 index rose above 7,500 points for the first time in the last three trading sessions. The positive FTSE 100 index price action can be attributed to the bounce in its major constituents like BP shares and major UK banks.
BP plc is a company whose shares are influenced a lot by oil prices. After a major correction, oil prices are currently recovering. In less than two weeks, the crude oil price has gained almost 15%. This has led to a corresponding bounce in BP share price as well, which is now up 9.5% from its monthly lows.
One of the major BP plc news this week is its recent partnership with Abu Dhabi National Oil Co. to take NewMed Energy Private. The UK and UAE oil giants also intend to create a new international joint venture and expand this partnership.
As mentioned in our last LON: BP analysis, the chart shows an ascending channel in which most of the price action has occurred in the past 15 months. Just recently, BP shares dropped below this channel but reclaimed it immediately. This shows that there’s a strong demand at the bottom of the channel, which is acting as a support.
If the price gains acceptance inside the channel again, then the BP share price forecast of 550p is very much possible in the coming days. This level lies at the top of the rising channel and may become a resistance in the near term.
This post was last modified on %s = human-readable time difference 13:27