BP share price is lagging despite a rally in global oil prices on Tuesday. Even though the shares of the petroleum giant were up 0.11%, they remain below their weekly high of 479.4p. Analysts are expecting an increase in volatility for the rest of this week due to the OPEC+ meeting.
The recent weakness in the global demand for oil may force the cartel of oil production countries, including Russia, to agree on significant production cuts to support prices. At press time, the futures for the Brent variant were changing hands at $81.12.
In my last analysis, I presented a bullish outlook for the BP shares. Since that forecast, the price action of the stock has remained sideways. This may change soon as the indicators are pointing toward a potential bottom formation on the daily chart.
You may see yourself that as the BP share price has continued to form lower lows on the daily timeframe, RSI and MFI indicators have formed higher lows. This phenomenon is known as the bullish divergence, and it usually occurs near the bottom of any stock.
However, a clear break below the 466p support level will invalidate this bullish outlook.