BP Share Price Opens Higher On Improved Earnings, But Bearish Flag Could Force a Selloff

BP share price has risen from 24.08 to 25.20 in premarket trading, after the company announced a vast improvement in earnings. BP posted a profit of $0.83 per ADR share, which was much better than the $1.98 loss per share posted for the same period in 2020. Expectations had been for earnings of $0.54 per share. Revenue also grew from $20.78 billion in Q2 2020, to $37.60 billion in Q2 2021.

The company also provided positive guidance, saying it expects to increase upstream production in subsequent quarters.

BP Share Price Outlook

The opening surge of Tuesday takes the price on a test of the resistance at 25.19. If the price clears this barrier, 26.01 becomes the next available target before 27.15 comes into the picture.

On the flip side, price is trading in a bearish flag. The potential for price to be resisted at 25.19 or 26.01, where the flag’s upper border is located, is high. If this happens to be the case, a pullback move could result with sellers trying to force a breakdown of the flag. This puts 24.02 at risk. If this support level gives way, the flag’s evolution is also completed and 21.13 becomes the target for a measured move. This move would have to take out 22.79 and 22.01 to be actualized.

BP Share Price: Daily Chart

Follow Eno on Twitter.