BP Close to 50 Day Moving Average

Published on Friday, 23 July 2010 06:00 Written by Danny Miller

New York, July 23rd (TradersHuddle.com) - Shares of BP plc (NYSE:BP) closed the trading day at $36.23 close to its 50 day moving average currently set at $36.19. BP's price action is just above this important support level translating into 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.

Looking at peaks and troughs horizontal support and resistance levels, we can see current calculated support at $34.58 and calculated resistance at $39.81. These levels should also be evaluated by traders when planning their trades, as they provide an insight into the latest price action.

Traders wanting to establish a position on BP will be looking at the price action for evidence of buying near the 50 day moving average, and opening a position as close as possible to this important level. Also traders will be looking at the latest price action, via the stocks current range previously defined for insights of other key levels that might affect their upside or downside.