Will a Recent Victory Be Positive for BP?
T = Trends for a Stock’s Movement
BP is an integrated oil and gas company. The firm provides its customers with fuel for transportation, energy for heat and light, lubricants, and the petrochemicals products used to make items like paints, clothes, and packaging. It operates in two business segments: exploration and production, and refining and marketing. BP provides energy products to consumers and companies worldwide. Without the oil and gas products provided, many consumers and businesses would not be able to operate on a daily basis.
BP had a recent victory in court as the Fifth U.S. Circuit Court of Appeals in New Orleans decided on Wednesday that the claims administrator for the government, Patrick Juneau, needs to be more discriminating about claims related to BP’s 2010 Deepwater Horizon oil spill, Reuters reports. The court also ruled to stop payments on claims that don’t meet the new, stricter standards. After the spill, BP agreed to be responsible for economic losses but has complained that it’s been forced to pay claims for people and businesses that were not harmed by the disaster.
T = Technicals on the Stock Chart Are Mixed
BP stock has struggled to make significant progress in recent years. The stock is currently trading near mid-prices for the year and it may need to spend time here before moving. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, BP is trading between its tangled key averages, whichs signal neutral price action in the near term.