The BP share price erased some of the losses it made yesterday after some positive reports from Azerbaijan. The shares are trading at 297p, which is a few points above yesterday’s low of 290p. Similarly, the Royal Dutch Shell share price has jumped by almost 2%, becoming one of the best performers in the FTSE 100.
What happened: The BP share price has been under intense pressure in the past few weeks as traders reflect on the surging coronavirus cases in some countries like India. Today, the stock is trading at 297p, which is about 2% above its yesterday’s close.
This happened after Azerbaijan, a country where the company has large assets, announced that its oil output in the first quarter was more than 5.9 million barrels. This was a substantial increase than what most analysts were expecting.
The BP shares also rose as part of the general rebound of UK stocks. The FTSE 100 index rose today after dropping for the past two consecutive days. Also, investors are bracing for more returns after the company announced that it will start buying back its shares ahead of schedule.
BP share price forecast
The daily chart shows that the BP share price has been in a tight range recently. It has remained between the support at 288p and 311p in the past few weeks. As a result, it is along the 25-day and 15-day moving averages. It is also along the lower line of the ascending trendline while the Average True Range (ATR) has continued to drop.
Notably, the shares seems to be forming a head and shoulders pattern. Therefore, in my view, the stock may soon break out lower as bears target the support at 250p. However, a break above the resistance at 311p will invalidate this prediction.