New York, March 5th (TradersHuddle.com) - Shares of BP plc (NYSE:BP) closed the trading session at $55.09 near its 50 day and 200 day moving averages currently set at $56.96 and $53.79 respectively. BP's price action is above the 200 day moving average but below its 50 day moving average, signaling a possible break out.

BP plc (NYSE:BP) is an oil and petrochemicals company. The integrated oil company explores for and produces oil and natural gas, refines, markets, and supplies petroleum products, generates solar energy, and manufactures and markets chemicals. BP was founded in 1889 and is headquartered in London, UK.

A tiered approach to enter the stock, appears to be the best way to maximize possible movements from the stock, as traders could enter BP with a small position and wait for the stock to break out above the 50 day moving average at $56.96, where traders could add to their position as momentum builds with the breakout. The flip side will be if support being referenced at the 200 day moving average set at $53.79 breaks it could mean further downside in the horizon for BP.