BP, British Petroleum update.

The verdict is now out, they were mostly to blame but the other parties were not completely innocent either. Despite all the ups and down this stock has adhered remarkably to EW principals and Fibo ratio’s. Back in Jan 6 it was recommended to sell the stock at $47.50 (see the old blog) The stock did go higher as on Jan 18th it almost reached $49 (a $1.50 difference) and then it starts to implode. Here are the two charts, then and now;

BP jan 2011 bp sept 15 2011

Again it reaches 61.8%, this time to the downside and stops dead at that point. A $7 (to $42) rebound is quite likely here but the pattern does not appear to be complete so one needs to take care when playing this!