BP (LON: BP) share price has been consolidating around key support for the past few weeks. A breakdown of this support will open the floodgates for a much bigger move to the downside. The technical analysis reveals that bulls don’t have too much time left.
On Monday, the UK shares turned red right after opening. The benchmark FTSE 100 index also fell 30 points before showing a strong recovery. Till press time, the index had turned green and was up 18 points. Consequently, BP shares also recovered from their daily low and rose by 0.46%.
BP Signs MOU To Buy LNG From Australia
The latest BP plc news reveals that the British oil & gas giant has signed a non-binding MOU to buy Liquified Natural Gas (LNG) from Tamboran Resources in Australia. This will allow BP to buy 2.2 million tonnes of LNG for the next 20 years.
The Bank of England recently hiked the interest rate in the country to its 15-year high. This triggered a sell-off in the UK stock market. BP shares are also facing headwinds due to the high interest rates in the UK. The FTSE 100 index has lost 70 points since the rate hike.
BP Share Price May Soon Retest September Lows
The LON: BP chart has been trading sideways for the past few days. Such consolidations often result in a major move. BP share price forecast will flip extremely bearish if the price gains acceptance below the 456p support level.
In such a scenario, bears may target the September lows that lie around 422p. This will be a more than 7% drop from the current price level. The price action has also formed a head & shoulders pattern on the daily chart. The measured target of this bearish patterns breakdown is 362p, which is more than 20% below the current price.
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