The BP share price has surged 2.88% on the day, extending the stock’s bullish run to seven consecutive days. The rise in the BP share price follows the 2-day strong rally in Brent crude oil prices.
Investors are also applauding the decision of Norwegian offshore petroleum safety regulators to grant consent to the Norwegian division of the company to prospect for oil in the North Sea.
Aker BP will be drilling the pilot well 25/10-U-8 in the North Sea after approval was granted by the Petroleum Safety Authority, which is a major victory for the company in its long-drawn struggle to gain this approval.
Tuesday’s uptick has violated the 8 June 2020 high at 376.80. A 3% penetration close above this level confirms the breakout, which opens the door towards the 385.75 resistance level. 395.00 comes into the picture if the bulls push the price above 385.75.
On the other hand, a decline below 376.80 on profit-taking sends the pair towards 366.40. Subsequent downside targets at 359.15 and 353.60 are also potential dip-buying areas. However, if the price declines below 353.60, the potential for an additional correction towards 343.40 and 337.00 increases.