Trading Idea - BP Broke Resistance, What to Expect?

Published on Tuesday, 09 March 2010 06:44 Written by Christopher Lynn

New York, March 9th (TradersHuddle.com) - Shares of BP plc (NYSE:BP) closed the trading session at $56.17 just above calculated resistance at $56.14 effectively breaking out, grabbing the attention of momentum traders, which could eventually push the stock to different trading range

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.

BP's stock was trading in a well defined range with support at $52.00 and resistance at $56.14, given that this range was broken traders will be closely monitoring the stock?s price action for clues of direction.

From a technical perspective it can be expected that previous resistance becomes support, as the new range gets defined, however, given that BP's stock is still near the broken resistance level, traders will be focusing on $56.14 to see if the stock holds the breakout without rolling over.