I Can't Believe BP is Moving Higher!

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

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