With the FTSE dropping early in the day most of my positions have gone with it. They haven’t traded low enough to hit any stops yet but there are still a few hours to go before the end of the day so who knows what will happen.

I think the maket dropped because today was emergency budget day. I think the markets already had the news factored in as the chancellor made his announcements and I don’t think there were that many surprises for the markets so the FTSE actually rose a little as he made his announcements.

I have been monitoring BPs price for the last few weeks. You may remmber in an earlier post that I actually had a position in BP which stopped out within about and hour of opening it. The price made a new low today of about 328. Looking at the weekly chart the stock is currently showing momentum divergence, and with 328 being the lowest the stock has been in 10years I think it’s starting to look cheap. The price has fallen by nearly 50% in two months and if it closes this week down it will be the 10th week in a row the price has fallen. I am tempted to place an order to buy around 329 with a tight stop set at 319. I can’t make my mind up at the moment but I am continuing to monitor the price. If I don’t make my mind up in time then so be it. There will be other trades another day.

I’d love to hear other peoples thoughts on BP. Feel free to leave a comment or e-mail me.

Anyway that’s all from me today.
Until next time
“May the markets be with you”
Spread Betting Beginner

Don’t take my posting here as a trade recommendation. The information contained within this blog is for educational purposes only and should not be taken as advice of any kind. The author of this blog will not accept any responsibily for any loss made by anyone acting or refraining to act as a result of reading material contained within this blog.

June 22, 2010 by Harry
Category: blog