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BP’s 50-Day Average Inches toward Its 200-Day Average

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BP’s moving averages in the current quarter

In the previous article, we learned that BP (BP) stock has risen 10% in the current quarter. Now let’s look at BP’s moving average trend.

So far in the first quarter, BP has published robust fourth-quarter earnings results driven by better upstream realizations. Higher oil prices and stronger markets, as we discussed in the previous article, have also led to the rise in BP stock this quarter, affecting its 50-day moving average, which has risen 2% so far.

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BP’s 50-day moving average has moved closer to its 200-day moving average in the first quarter. Its 50-day moving average, which was 7% below its 200-day moving average on January 2, 2019, now stands 4% below its 200-day moving average. The narrowing gap suggests a higher chance of BP’s 50-day moving average crossing over its 200-day moving average. Usually, when a short-term moving average crosses over a long-term moving average, it’s considered a technically bullish sign.

Peers’ moving averages

Total’s (TOT), Equinor’s (EQNR), and Eni’s (E) 50-day moving averages stand 6%, 10%, and 5%, respectively, below their 200-day moving averages. Suncor Energy’s (SU) 50-day moving average stands 11% below its 200-day moving average.

Let’s examine the moving averages of the SPDR Dow Jones Industrial Average ETF (DIA) and the SPDR S&P 500 ETF (SPY), which closely resemble the Dow Jones Industrial Average and the S&P 500 Index, respectively. While SPY’s 50-day moving average stands 2% below its 200-day moving average, DIA’s 50-day moving average stands 1% below its 200-day moving average.

In the next article, we’ll estimate BP’s stock forecast price range leading up to March 29, 2019, the quarter’s end.

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