Will BP Stock Shake Off Oil Spill Concerns?
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 is facing bad news in its efforts to stop more people and businesses from filing claims against it related to the 2010 Deepwater Horizon spill in the Gulf of Mexico. The deadline for compensation claims was set for April 2014 but is likely to be pushed back into 2015. Claims reached $9.6 billion at the end of June and are expected to continue rising.
T = Technicals on the Stock Chart Are Mixed
BP stock has struggled in recent years as it continues to recover from an oil spill a few years back. The stock is now trading near mid-prices for the year and it may need time at these prices. 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 key averages, which signals neutral price action in the near term.