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BP PLC had a sharp decline from $60.98 to $26.75 in 2010 (A-B) followed by a recovery rally to $49.50 (C). Subsequently, it settled in a large, multiyear triangle pattern made up of lower highs and higher lows (dashed lines). The recent price action above the triangle indicates a bullish sentiment and signals the start of a new major up-leg (D).

Technical indicators including the 40-week moving average (40wMA) and the MACD (lower panel) confirm the bullish status. Only a decline below $48-$49 would be negative.

Point & Figure measurements provide targets of $59 and $64. Higher targets are visible.

Monica Rizk is the senior technical analyst for Phases & Cycles Inc. (www.phases-cycles.com). Ron Meisels is a contributor to the www.NA-marketletter.com website and Tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.

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