The BP share price is bouncing back today as investors focus on the price of crude oil. The price rose to 321p, which is 70% above the October 29 low of 188.60p. Similarly, the Royal Dutch Shell share price has risen by more than 1.30% to 1,506p.
What happened: BP has been rebounding lately. Last year, the stock declined to the lowest level in more than two decades as the price of crude oil declined. The firm also reported more than $20.3 billion annual loss, the biggest loss on record.
In the past few months, however, the company has bounced back in line with the price of crude oil. Yesterday, the price of Brent crude jumped to $71, the highest level in more than a year. The price of West Texas Intermediate (WTI) rose to above $68.
However, this price has retreated as investors reassess the recent Saudi Arabia attack. Still, the company is set to benefit from the ongoing resilience of oil prices. Also, in the future, the company could benefit from the shift to green energy.
BP share price forecast
On the daily chart, we see that the BP share price broke-out above the important resistance of 311p. This was the highest level on January 28. This price is above the 25-day and 50-day exponential moving averages (EMA). The Relative Strength Index (RSI) has also moved above the overbought level of 70.
Therefore, while BP is in the overbought zone, it is not yet extremely overbought. This means that the uptrend will continue rising as bulls target the next resistance at 350p. However, a drop below 280p will invalidate this trend.
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BP stock chart
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