BP P.L.C. (NYSE: BP) is taking a bad turn following in the footsteps of EXXON MOBIL the way down.
The worst is never certain as the stock price is still struggling to avoid drowning by remaining above the rising support line on the weekly price chart. The bearish scenario will become more convincing on a decisive break and close below it.
Due to the low Relative Strength, the weekly trend turning lower and the repeated selling activity against the $37 area it is recommended to refrain from going long on BP but on the contrary shorting the stock is the most logical action to undertake.
– Wait for a decisive break and close below $34
– Sell preferably on a retest of the broken support line
– Initial stop-loss should be above $37
– Initial target is the lower triangle boundary on the yearly scale at $25
Disclosure: I have no position on $BP.