Is BP Closing in to Resistance?

Published on Thursday, 14 June 2012 07:40 Written by TradersHuddle Wire

New York, June 14th (TradersHuddle.com) - Shares of BP plc (NYSE:BP) are trading very close to calculated resistance at $39.29. The stock ended the trading session at just $38.83, which is near levels that make it difficult to buy or start a position.

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 range is defined by its calculated support defined at $36.25 and by the resistance level at $39.29; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.

Traders don't have a clear entry point for BP. However, as the stock pulls back towards $36.25 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $39.29 then traders will get an opportunity to enter the stock as it moves to a higher range.