The BP share price (LON: BP) has spent the last 6 days attempting to clear the significant technical resistance seen at 300p. However, this week the oil major’s shares may finally break higher. BP has been frustrating for investors in 2021.
Whilst crude oil prices have rallied around 60% since the start of the year, BP has managed to add just 15% in the same time. And even though the stock has increased 60% from the March 2020 pandemic low, it remains 40% below its pre-pandemic 2020 high. Although, there are signs that BP may soon get a boost.
The daily chart shows significant confluent resistance above 300p has proved unscalable over the last week. The 50, 100 and 200-day moving averages converge between 301.04p and 301.69p. This is remarkable considering the share price has traded between 275.85p and 336.95p in the last two months alone. Adding to the resistance is a descending trend line from the June high, currently seen at 302p. This combines to create a considerable obstacle for the price. However, when cleared, significant resistance becomes considerable support, and therefore, if the BP share price can climb above 302p, it should go even higher.
Above 302p, the next level of interest is the August 311p high. And should that fall, the share price has the potential to target trend resistance at 346p. However, a failure to break above 302p could lead to a test uptrend support at 290p. Furthermore, should the price drop below 290p, the July 275p low becomes an achievable target for the bears.
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