New York, October 5th (TradersHuddle.com) - BP plc (NYSE:BP) closed the trading day at $42.57, near its 50 day and 200 day moving averages currently set at $42.20 and $42.57 respectively. BP's price action placed the stock above these important levels, which could translate into a trading opportunity.BP plc (NYSE:BP) is an oil and petrochemicals company. The integrated oil company explores for and produces oil and natural gas, refines, markets, and supplies petroleum products, generates solar energy, and manufactures and markets chemicals. BP was founded in 1889 and is headquartered in London, UK.
Although, the price is above important moving averages, it's important to highlight that this is not a prime setup for buying the dip strategy, as the 50 day moving average is currently below the 200 day moving average.
The peaks and troughs algorithm shows calculated support at $39.50 and resistance at $44.16. These levels should also be evaluated by traders when planning their next move, as they provide an insight into the latest price action.
If traders want to establish a long position in BP, it will certainly be better to wait, given that the
stock is technically broken with the 50 day moving average trading below the 200 day moving average. Traders can also look at the current range defined by the peaks and troughs to establish a short trade versus those levels.