BP (LON: BP) share price has had a rough few days as it slid 4.3% from its weekly high. Currently, the shares are changing hands at 472.65p. The chart shows the price is printing a green candle which can be attributed to the rising oil prices.
Oil prices showed some bullish pressure today and are currently up more than 1% at $84.3. This positive price action can be due to China importing record-high volumes of oil. The second-largest economy in the world has reported a 12% increase in crude oil imports which is about 11.4 million b/d.
On 15th August, BP pledged an investment of $12.5 million in a green start-up company, Advanced Ionics. The investment is expected to expedite the process of developing technology that aims to reduce the production costs of hydrogen by using water vapor-based electrolyzers.
In other news, two new wind farms are expected to be built by BP. The CEO announced they would do so by not asking for government support. He also announced that these two projects are expected to start late next year and will take another year to complete.
The price chart for LON: BP shows that the price was rejected from the downward trendline on the 10th of August. This triggered a sell-off in the shares, as the price is now 4% below that point. The price now seems to be heading for a retest of the 465p support level.
If the price rebounds from the 465p level, there is a high chance that the bulls target the trendline retest once again. However, if the oil prices suffer a deeper correction, bears might be able to tank the price below 465p. In this case, the next bearish target will target the 448p support, which is also 00.618 Fib level.
This post was last modified on Aug 17, 2023, 15:21 BST 15:21