Coronavirus crash: how low can the BP and Tullow Oil share prices go?
Last week, the two oil and gas companies saw their shares take a significant tumble, with the coronavirus bringing about a major sell-off in global equities and, with a wider decline in oil prices the pair could fall further.
Over the last seven trading sessions, BP and Tullow Oil have seen their shares fall by 5% and 9% respectively, with the pair succumbing to investor panic derived from the COVID-19 outbreak that brought about major sell-off in global equities last week.
This week, the pair have seen their stocks claw back some of their losses, but with oil prices in decline, with Brent crude trading at $52 a barrel after falling to $49 last week, down 16%, investors will likely take a bearish view towards BP and Tullow Oil that could see their share prices fall further.
BP and Tullow Oil closed at 414p and 32p respectively on Tuesday.
BP: technical analysis
BP shares hit the lowest level since mid-2017 last week, with the wider decline in oil prices hurting the stock, according to Joshua Mahony, senior market analyst at IG.
That decline took price through a confluence of trendline and horizontal support around £4.52. That level also provided the completion of a bearish double top formation following a three-year rally that saw the stock gain 121% since the February 2016 low.
While price is on the rise this week, we are likely seeing a retracement of the recent decline, with further downside expected before long. With that in mind, a bearish outlook is in play despite the current bounce, with a rise through £4.81 required to negate this view.
Looking to trade BP and Tullow Oil? Open a live or demo account with IG today.
Tullow Oil: technical analysis
Tullow Oil declines have been consistent since the mid-November breakdown, with the stock hitting fresh lows last week, Mahony said.
‘There is little reason to expect the tide to turn given the lack of any bullish signals,’ he added. ‘As such, a bearish outlook remains in play, with trendline resistance likely to continue depressing price for the foreseeable future.’
You can go long or short BP and Tullow Oil with IG using derivatives like CFDs and spread bets.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Act on share opportunities today
Go long or short on thousands of international stocks with spread bets and CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take advantage while conditions prevail.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.