BP Is Near its 50 Day Moving Average

Published on Friday, 03 August 2012 08:32 Written by TradersHuddle Wire

New York, August 3rd (TradersHuddle.com) - BP plc (NYSE:BP) closed the trading day at $39.95, near its 50 day moving average that is set at $39.41. BP's price action is just above this important support level, providing a trading opportunity.

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.

The peaks and troughs algorithm shows calculated support at $39.50 and calculated resistance at $42.05. These levels should also be evaluated when planning trades, as they provide an insight into the latest price action.

Traders wanting to establish a position on BP should look for evidence of buying near the 50 day moving average, and open this position as close as possible to this important level. Also, they need to consider the latest range defined by the peaks and troughs algorithm for insights on other key levels that might impact an upside or downside move.