BP p.l.c. ( BP ) is set to open higher Monday morning as oil prices are up sharply. Oil participants have bid up the price of crude in the wake of Canada’s largest oil producing province ordering an unprecedented output cut. Facing a pipeline bottleneck and glut of oil in storage, Alberta will make producers slash output by 8.7%. This follows a renewed commitment over the weekend by Saudi Arabia and Russia to extend a deal to manage the oil market. Keeping these positive developments in mind, let’s take a look at the charts and technical indicators for BP. In this daily bar chart of BP, below, we can see one pattern of trading for price and another pattern for the On-Balance-Volume (OBV) line. Looking at price we can see a zenith or peak in May with a decline to an August low and rally into October. Weak oil prices and generally weak stock prices probably impacted BP’s share price. BP broke the August low in October and November. Prices are below the declining 50-day moving average line and the flat 200-day line. Last week the 50-day line moved below the 200-day line for a belated sell signal commonly […]
