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The BP share price closed yesterday’s trading session with a 3.7 per cent loss, extending a bearish trend of the past two weeks. However, in the early of today’s trading session, the BT share price has shot up by 4 per cent, wiping losses made yesterday. The intraday trading is also showing signs of continued price gains throughout the session.
Why BP Share Price is Bullish
Despite the past two weeks being aggressively bearish, the fundamental data and its financial reports have painted a different report. In the latest quarter, the company reported its underlying replacement profit had risen to $8.2 billion. BP also reported that its operating cash flow was $803 billion, with its net debt reducing by $22 billion.
The company also reported that its capital expenditure for the quarter was $3.2. As a result of the improving financial position of the company, BP announced they would be spending $2.5 billion in share buybacks, which is likely to see its share prices going up for the long term.
Therefore, the recent bear market that had lasted for about two weeks was in response to short-term headwinds. For the long-term, the company is looking bullish, and we might see it continue going up.
BP Forecast
Looking at the chart below, we can see the past two weeks have been bearish, mostly due to short-term fundamental factors. In yesterday’s trading session, the price action had all the signs of the continuation of the bearish trend of the past two weeks.
However, with today’s BBP share price surge of over 4 per cent and intraday trading giving a bullish signal, it is likely that the recent price correction is over, and BP share price has resumed its long-term bullish trend that has seen its value grow by more than 30 per cent year-to-date.
Therefore, my BP share price prediction expects the company to trade over 500p within the next few trading sessions. There is a high likelihood we might see the company closing the year above 600p. However, a trade below 450p will invalidate my bullish analysis.
Kelvin Maina is a computer science graduate who has a passion for cryptocurrencies. In 2017, he became professional crypto and Forex technical analyst for CryptoPolitan and in 2022, he joined InvestingCube.com.
United States of America
