BP (LON: BP) share price has been in a tailspin since last month. The shares have printed the second consecutive red candle on their weekly chart. The latest analysis shows that there is a key level on the chart that the bulls must hold to avoid a major downside.
On Friday, the UK stock market showed a mixed sentiment. The benchmark FTSE 100 index remained sideways and closed the week with a 59.3 points loss. This translated into the third week in a row for the index that tracks FTSE 100 companies.
BP Purchases TravelCenters For $86 Per Share
According to the most recent BP plc news, its purchase of TravelCenters of America has been recently approved by the shareholders of TravelCenters. As per the details, the shareholders turned down the more lucrative offer of ARKO Corp. and overwhelmingly approved the $86/share sale to BP plc.
The recent slump in oil prices appears to have significantly impacted BP share price, which is now trading close to its monthly lows. After a negative price action most of the week, the shares had a 1.11% bounce on Friday and closed at 483p.
BP Share Price Needs To Hold 465p
Technical analysis of the LON: BP chart on a daily timeframe reveals that 465p is a very significant level. A breakdown below this level can make the BP share price forecast bearish for the near term. A closer look at the chart also reveals that the price has been fondling with 200 MA for the past few days.
The 465p is also the 0.5 Fib retracement level of the ongoing correction from yearly highs. This confluence makes this level even more critical. As long as the price holds this level, bulls have nothing to worry about. However, bears may gain momentum as soon as the price breaks below this level.
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