British Petroleum (BP) gapped down about 4 percent this morning (pre-market) into new low territory. Let's have a look at my long-term weekly chart work.

BP closed yesterday at 30.33 but hit a new "crisis low" at 28.95 in pre-market trading and now is trading at 29.42. My pattern analysis is warning me to expect 28 to 26 (27 optimally) prior to a meaningful recovery rally (that lasts more than 2 hours). That rally should be able to revisit massive resistance between 33.50 and 35.00, after which BP should resume its powerful and dominant downtrend on the way to 22.00.

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.