NYSE:BP Shows Potential for a Breakout.

Our stock screener has spotted BP PLC-SPONS ADR (NYSE:BP) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NYSE:BP.

Deciphering the Technical Picture of NYSE:BP

ChartMill assigns a Technical Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple technical indicators and properties.

We assign a technical rating of 10 out of 10 to BP. Both in the recent history as in the last year, BP has proven to be a steady performer, scoring decent points in every aspect analyzed.

• Both the short term and long term trends are positive. This is a very positive sign.
• Looking at the yearly performance, BP did better than 90% of all other stocks. On top of that, BP also shows a nice and consistent pattern of rising prices.
• BP is one of the better performing stocks in the Oil, Gas & Consumable Fuels industry, it outperforms 70% of 217 stocks in the same industry.
• BP is currently trading in the upper part of its 52 week range. The S&P500 Index is also trading in the upper part of its 52 week range, so BP is performing more or less in line with the market.
• In the last month BP has a been trading in the 36.96 - 39.73 range, which is quite wide. It is currently trading near the high of this range.

Check the latest full technical report of BP for a complete technical analysis.

Looking at the Setup

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:BP this score is currently 10:

BP has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 40.28. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 38.76, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for BP in the last couple of days, which is a good sign. Another positive sign is the recent Pocket Pivot signal.

How can NYSE:BP be traded?

A breakout opportunity may arise when the stock surpasses the current consolidation zone and reaches new highs. Traders often wait for this breakout before considering buying the stock. To manage risk, a stop loss order could be placed below the consolidation zone to limit potential losses.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.