Bullish BP approaches a key zone and you should keep watch

In just five days, British Petroleum Plc. (LON:BP) has returned over 11%. The returns compare to a 16% return year-to-date. The growing popularity of firms exposed to oil and gas sectors has been responsible for the robust returns this year. The most recent returns in the oil giant have been boosted by robust quarter results, which came on May 3. The company booked a replacement cost profit of $6.2 billion, its highest since 2008. BP also boosted its share buyback to $2.5 billion from the previous $1.5 billion, reflecting a strong cash flow. 

BP is set to benefit more, with the oil and gas sectors showing little signs of slowing down. The stock should be among those that investors should watch keenly as it approaches a key zone.

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BP stock technical analysis

Technically, BP has maintained a bullish momentum of higher highs and higher lows since late last year. After a strong week, the stock broke past a minor level at $413. At the current $426, the stock trades beneath the main resistance zone of $440-$460. Investors should hold the stock in this zone. Nonetheless, new BP buyers should wait to snap an opportunity on a retracement after the stock reaches the resistance.

Summary

BP has enjoyed a stellar rise due to the strengths of the oil and gas sectors. A robust quarter also builds a bull case for the stock. BP is a hold up to the $440-$460 zone. New buyers should wait to snap the stock lower on a retracement after reaching the resistance zone.

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