BP Is Moving Above Resistance

Published on Friday, 17 August 2012 08:28 Written by TradersHuddle Wire

New York, August 17th (TradersHuddle.com) - Shares of BP plc (NYSE:BP) closed the session at $42.75 just above calculated resistance at $42.62. The stock moved to what appears to be a higher range, spurring attention from momentum buyers.

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 stock was trading in a well defined range with support at $39.50 and resistance at $42.62. Given that this range was broken, traders will be closely monitoring BP's price action to gather clues on the future direction.

From a technical perspective, it can be expected that previous resistance becomes support, as the new range gets defined. However, given that BP is still near the broken resistance level, traders will be focusing on the $42.62 level to see if the stock holds the breakout without rolling over.