BP (LON: BP) share price has turned red for the second consecutive week. Shares of the British Petroleum giant tanked 7.82% last week, which was the biggest weekly drop since March 2023. The latest technical analysis shows that the bulls are running out of time as the bears are gaining momentum.
On Tuesday, BP shares dropped 0.71% as the FTSE 100 index lost 42 points. The decrease in oil price also acted as a catalyst for the negative price action. The shares of BP plc are hanging by a thread as the price is retesting a key level on the daily chart.
BP PLC Reports $5Bn Profits in Q1
According to the most recent BP plc news, the company has announced the financial results for Q1 2023. The latest earnings report reveals that the company’s profits remained at $5Bn in the first three months of 2023. The company also announced a share repurchase plan of $1.75 billion over the next quarter.
The lower share buyback is a result of the drop in the operating cash flow of the company in Q1, which decreased from $13.5 Bn to $7.6 Bn. BP share price reacted negatively to the financial results. The company’s dividend also remained unchanged from the February figure of 6.61 cents.
BP Share Price Retests 200 MA
The following LON: BP chart shows that the price has tagged the 200 moving average on the daily timeframe for the first time since July 2022. The 200 MA acts as a line in the sand for many traders. Therefore, I expect a bounce from this level. The price also appears to be forming a double top pattern after multiple rejections from the 550p level.
However, if the price drops below 200 MA, then the BP share price forecast will flip bearish. In such an event, the next support lies at 455p. There is also a possibility of another retest of the 500p level, but the price may get rejected from the trendline of the ascending channel.
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