British Petroleum (BP) have been having a terrible year so far mainly due to the infamous oil spill in the Gulf of Mexico. It has dropped nearly 50% with tremendous volume since late April. BP went from high of $60 to low of $26 in the span of almost 2 months. However since June, we unexpectedly experienced a rally from its low to currently at $34 as of last Friday.
Will BP continue its path to higher prices? In looking at a Year to Date chart, it looks like there is a 50 day moving average at around $39, which will act as a resistance. At this time, I do not see BP going much higher than this range.
At the same time, keep in mind the Fibonacci Retracement Levels. Currently, BP is very close to retracement to 23.6%. Once BP breaks $35 level, it should head towards its 50 day moving average and its 38.2% retracement level. Here is rest of Bp’s Fibonacci Retracement Levels.
23.6% @ 35.35
38.2% @ 40.50
50.0% @ 44.67
61.8% @ 48.83