BP has broken it most recent low at 470p and gapped down with a bearish move today. It looks oversold on the daily chart, but not on the weekly. On both time frames its price has not yet broken through the uptrend line which was establish in Feb 2016. It's also about 20p away from its 200 weekly EMA at 434p. The price has also broken through 464p which is a key level having been resistance in July 2016 and Nov 2106. Usually resistance becomes support, but not today.
For me the weekly chart shows a little divergence with MACD and RSI showing the price will have further to fall, possibly to 440p as a first target. DYOR
PS: I don't accept troll-like comments based on my technical assessments but always accept well founded and evidenced criticism. Peace!
Oil companies have all been reducing costs, so for BP to increase break even to $60 has spooked the market. Dividend is sacrosanct so BP will have to sell more assets in the short and medium term to cover it.
Grayling, I guess that then is the difference between doing as we do, having our brokers spend our dividend money on buying shares on the open market, to that of a Script dividend, which I think you can sign up for on the BP website?
No expert on this, but wondered what the difference was, and 'perhaps' that is it??
Bit unfair though, as BP shares then become worth less as more are issued, yet I guess it equals out, as the cash that would leave BP otherwise, then stays in the company coffers?
Doubt we have seen the last of the fall this week.
You are right and that is how my divi's are reinvested, but there must also be a company scheme which involves the issue of new paper if the Hargreaves statement below is actually true: "One worrying aspect of the dividend is the colossal amount being paid out in shares rather than cash, which increases the number of mouths to feed next time a payment is made. BP issued $2.9 billion of shares in lieu of dividends in 2016; shares which if listed separately would form a company at the top end of the FTSE 250."
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.