BP => The stock trades at a post-pandemic high
Oil => The commodity trades steadily around $90
BTC/USD => The crypto jumps 18% in 3-days
BP (US) Rises After jumping into profit
BP is expected to open higher in the US after reporting bumper profits on the back of surging oil and gas prices. The energy company reported underlying replacement costs, which is the industry equivalent of net profits, of $12.8 billion in 2021. This was a huge improvement from the $5.7 billion loss recorded in 2020 and marked the highest profit in 8 years. In addition to impressive profits, BP announced another $1.5 billion share buyback program using the surplus 2021 cash flow. With oil at $60 per barrel, BP has said that they have the capacity for $4 billion in share buybacks. Oil is currently trading at $90 per barrel so there is scope for increased buybacks.
What’s next for BP (US) share price?
BP (US) share price has been trending steadily higher across the year forming a series of higher highs and higher lows. The price is trading at its highest-level post-pandemic. It trades above its 50 & 100 sma in a bullish trend. Although the RSI is tipping into overbought territory so there could be some consolidation around these levels. The price has also moved a distance above its sma.
Resistance can be seen at 35.25 the February 18th, 2020 low, ahead of the $37.79 January 27th, 2020 high. On the downside, support can be seen at $30.50/20 zone the February low and October high. It would take a move below $28.90 January 24 low & 50 sma for sellers to gain traction.
Bitcoin Surges Towards 45,000
Bitcoin rallied for 4 straight days following the better-than-expected US non-farm payrolls on Friday. The cryptocurrency has risen in line with risk assets in a recent week posting its longest rally since September and booked gains of 18% over the past three days. Global markets, including cryptos, have experienced wild swings since the start of the year amid concerns of the Fed moving aggressively to tighten monetary policy. Technically the picture is bullish as BTC/USD broke out of a descending channel, pushed over the key $40,000 psychological level and has retaken the 50-day moving average for the first time since November 18th. The next big test for the cryptocurrency will be 45,000.
Oil Looks to API Report
Oil lost ground on Monday, falling for the first time in 7-sessions. The oil market has always kept an eye on Iran and what could happen if oil sanctions are removed. Yesterday, progress in US – Iran nuclear talks meant that Iran took a step closer to putting its oil exports back on the market. WTI fell 1% on the prospect of millions of barrels of oil flooding back into the market. More positive headlines surrounding US -Iran talks could see oil prices fall lower. However, for now, oil prices are edging higher again supported by tight supply and geopolitical concerns in eastern Europe. API inventory data is due. Last week inventories fell by 1.645 million barrels. Another draw could boost the price higher.
Support can be found at 90.00 (round number) and 88.50 (1 February high)
Resistance for the oil can be seen at 92.65 (7-year high) and 93.00 (round number)
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