BP share price seems to have concluded its correction phase after facing strong rejection from the 551p resistance level. Cosnequently, the shares of the British energy company have surged 9% from their monthly lows amid the crisis in the Middle East. At the time of writing, the shares of BP are changing hands at 534p and are up slightly from yesterday.
The FTSE 100 index edged up slightly on Wednesday after miner shares gained due to the rising copper prices. The British benchmark index lost about 300 points last week after a 0.9% decline in retail sales was reported for the month of September.
BP is expected to release its highly anticipated Q3 earnings report next week. The analysts expect it to report $66.29 billion in its quarterly revenue. Side by side, a $1.37 earnings per share is also forecasted which represents a 47.1% decline from last year’s figures.
At the start of October, BP and Abu Dhabi’s ADNOC expressed their interest in buying NewMed Energy which is an Israeli gas company. This joint venture is valued at $2 billion and wants to extract gas in areas like the East Mediterranean. However, the fate of this deal remains unknown due to the escalating tensions in the Middle East.
BP Share Price Outlook
The 5.75% correction in LON: BP can be attributed to the plummeting oil prices as the markets anticipate the Israel-Hamas conflict to end soon. An analysis of the chart below reveals the price trading 2.5% below the key resistance level of 550p.
My last month’s BP share price forecast of the price suffering a correction from the 550p level has come true. The price temporarily broke above this level before plummeting 6.5% right after making a new monthly high. In the coming days, I expect the price to retest the 200 MA level which may act as a dynamic support around 501p.