The Range Is Tightening in BP

New York, March 15th (TradersHuddle.com) - Shares of BP plc (NYSE:BP) closed the trading session at $41.00 with its price action in a very tight range, given that calculated support is set at $39.99 and the calculated resistance is set at $42.19.

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 price action indicates that both sellers and buyers are materializing very close to each other. This signals an area where momentum is building, since the stock can resolve by breaking out of the developing tight range.

Traders wanting to establish a position should pay close attention to BP's price action, as any movement outside its predefined range of $39.99 and $42.19 could grasp the attention of momentum buyers that look for a big movement in the price of the stock. Traders need to be aware that tight range resolution works both ways, hence, a move below support could spark above the average selling. A tiered approach could be the best way to start a position; enter into it while the stock is in the tight range, and then add to this position as it breaks and closes above resistance.



Related Articles

    Related Partner Headlines

      Volatile market? That's when profit potential skyrockets for options traders. Now you can get up to 50 trade opportunities a week from top options experts -- plus much more -- on our exciting new site OptionsProfits. Try it FREE!

      TradersHuddle Search

      Stock Search:


      Site Search:

      Loading

      Technical Scans

      Recent Trading Ideas

      Latest Partner Headlines

      Stock Market

      Loading
      Chart
      o Dow Jones 18,151.10 ▼137.53 (-0.75%)
      o S&P 500 2,100.52 ▼16.87 (-0.80%)
      o NASDAQ 4,960.84 ▼47.26 (-0.94%)
      INDEXDJX:.DJI

      Dow Jones

      Company ID [INDEXDJX:.DJI] Last trade:18,151.10 Trade time:11:34AM EST Value change:▼137.53 (-0.75%)
      INDEXSP:.INX

      S&P 500

      Company ID [INDEXSP:.INX] Last trade:2,100.52 Trade time:11:34AM EST Value change:▼16.87 (-0.80%)
      INDEXNASDAQ:.IXIC

      NASDAQ

      Company ID [INDEXNASDAQ:.IXIC] Last trade:4,960.84 Trade time:11:34AM EST Value change:▼47.26 (-0.94%)

      In The Wires

      Copyright © 2013 TradersHuddle.com. All Rights Reserved.