BP Stock Breaks Out to the Upside

PUBLISHED: 01 Apr 2014 @ 22:18 | Comments (0) | More info about Azeez Mustapha

BP stock (NYSE:BP) has broken out to the upside and would continue going further north.

We want to buy when the trend is strong and stay aside when it is not strong. When the trend in the market is unclear, one would want to apply some filter so as to avoid bogus indications, which may cause fewer indications but higher accuracy. When the uptrend is clear, we would seek long trades only.

It can be seen that the price is making further northward attempts after it broke out upwards. Trading above the upper Trendline, the price has closed above the accumulation territory at 48.10. The RSI period 14 is also above the level 50, and therefore it is logical to go long.

Conclusion: BP could break the distribution territory at 50.00 to the upside, while going towards another distribution territories at 60.00 and 70.00. This, nevertheless, does not rule out the possibilities of bearish corrections along the way. Any southward corrections along the way may cause emotional reactions among market players which could result in panic smoothing and deeper corrections.

This forecast is ended with the quote below:

“Not trading in a methodical and tested system, but rather relying on emotion or a must-win attitude to create profits, indicates the person is gambling in the markets and unlikely to succeed over the course of many trades.” – Cory Mitchell

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