You Can Trade the BP Stock Price Using Seasonal Analysis
Trading the BP stock price is something amateurs should not try. British Petroleum shares were recently trading for less than book value, prompting many asset players, long term investors and smart contrarians to pile on buy positions even though the potential costs of future litigation are still unknown.
Is BP an expensive stock right now, or a good buy? One way to check is to go the MarketTimingResearch.com seasonal analysis blog, which clearly shows that BP stock prices made a low within a week or so of when expected. Only cycles analsysis, and seasonal technical analysis of stocks canhelp you do this. Now the charts suggest a bp stock price rise and then decline into October, and then bullish upwards movement again.
Everything depends upon the outcome of future litigation and clean up costs. While BP has pledged to pay all legitimate claims, wise individuals remember the Exxon Valdez spill and how the payments due from Exxon were chipped away over time.
Out of sight, out of mind. That’s the conclusion of many analysts. When the BP oil spill is no longer front page news, expect BP to make aggressive moves to reduce clean up and litigation costs to zilch. Just as insurance companies often refuse to pay on claims, BP will work for shareholders who want income rather than the public who wants it to do the right thing. It all comes down to companies acting for profit maximization rather than public interest. That’s the rule in capitalism today.
For day traders and investors, you should get the Market Timing free charting software to help you make better trading decisions. Investors only buy when there is an expected seasonal low, and sell when they think shares are over-valued and there is a seasonal top. We just saw a predictable seasonal bottom in the BP stock price and a seasonal top is coming soon.
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