Approaching Resistance - BP

Published on Friday, 10 February 2012 07:52 Written by TradersHuddle Wire

New York, February 10th (TradersHuddle.com) - Shares of BP plc (NYSE:BP) are trading very close to calculated resistance at $46.91 with the current price action closing at just $46.77 placing the stock near levels that make it difficult to buy.

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 current stock range is defined by current calculated support defined at $42.84 and by the resistance level at $46.91, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for BP, as the stock is well above support, however, as the stock pulls back towards $42.84 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $46.91 then traders will get an opportunity to enter BP stock by establishing a position as the stock moves to a higher range.