BP Shares Surge 3.37% As Technical Indicators Signal Potential Bullish Reversal

Candlestick Theory
Recent candlestick patterns for BP reveal a potential reversal signal. The substantial green candle on July 8th (+3.37%) with high volume pierced prior resistance near $30.93, while follow-through days (July 10th closing at $31.52) solidified bullish momentum. A three-white soldiers pattern emerged over the latest three sessions, supported by progressively higher lows. Key support now resides at $30.92-$31.00, validated by multiple bounces in early July, while overhead resistance clusters at $31.61-$31.69, coinciding with July’s double-top structure.
Moving Average Theory
BP currently trades below all critical moving averages, reflecting persistent bearish pressure. The 50-day MA (approximated ~$31.90) caps recent rallies, while the 100-day (~$32.40) and 200-day (~$33.10) MAs maintain downward slopes. However, the narrowing gap between the 50-day and 100-day averages suggests weakening bearish momentum. A bullish crossover between short-term MAs could signal trend reversal potential if prices sustain above $31.60.
MACD & KDJ Indicators
MACD histogram bars show diminishing bearish momentum, with the signal line flattening near the zero axis—a precursor to potential bullish crossover. KDJ oscillator (K=62, D=55) recently exited oversold territory, with the %K line crossing above %D, reinforcing upward momentum. While not yet overbought, sustained KDJ readings above 50 may validate the short-term bullish bias.
Bollinger Bands
Price action has re-entered the upper half of the bands after testing the lower band at $30.25 on July 7th. Bandwidth contraction to 6-month lows signals reduced volatility, often preceding directional breakouts. Current proximity to the middle band (~$31.20) leaves room for advance toward the upper band (~$31.90), though rejection here would indicate persistent selling pressure.
Volume-Price Relationship
The July 8th surge occurred on 41% above-average volume (9.38M shares), confirming bullish conviction. Subsequent gains on moderating volume suggest cautious follow-through. Notably, the highest volume days coincided with March’s breakdown and April’s recovery, establishing $28-$29 as a high-conviction support zone. Current volume profiles lack distribution signals, supporting consolidation.
Relative Strength Index (RSI)
The 14-day RSI (45.5) rebounded from near-oversold levels (31.8 on July 7th) but remains neutral. This recovery without overextension leaves headroom for additional upside before caution triggers at 70. The RSI’s higher low against price’s flat July trough showed positive divergence, foreshadowing the recent rebound.
Fibonacci Retracement
Using the April 9th peak ($32.94) and April 25th trough ($28.38), the 50% retracement ($30.66) acted as dynamic support throughout June-July. The current advance faces resistance at the 61.8% level ($31.20), which aligns with July’s highs. A decisive break above $31.20 would target the 78.6% retracement at $32.05.
Confluence and Divergence
Confluence exists around $31.20-$31.30, where Fibonacci resistance, the 50-day MA, and Bollinger Mid-Band converge. Breaching this zone would align with MACD/KDJ momentum and volume confirmation to signal trend reversal. Minor divergence occurred in late June when RSI made lower highs against stagnant prices, preceding July’s selloff—currently no significant divergences undermine the nascent recovery. Overall, BP shows technical improvement, though sustained clearance above $31.60 is critical for confirming bullish momentum shift.