In recent years, there has been an explosion in the use of AI and machine learning algorithms in the field of finance. One such example is the AI bot Trend Trader, which uses both technical analysis (TA) and fundamental analysis (FA) to make investment decisions. Recently, Trend Trader generated a return of 6.69% for BP, a major multinational oil and gas company.
Technical analysis is a methodology that uses past market data, primarily price, and volume, to forecast future price movements. In the case of BP, Trend Trader likely used various technical indicators, such as moving averages, trend lines, and Relative Strength Index (RSI) to analyze the stock's behavior. The RSI indicator measures the strength of a security by comparing its average gains to its average losses over a certain period. An RSI value below 30 suggests that a stock may be oversold and due for a rebound.
In the case of BP, it is noteworthy that the RSI indicator recently left the oversold zone. This is a positive sign that suggests the stock may be gaining strength and that the market sentiment may be turning more bullish. It is important to note, however, that technical indicators such as RSI are not foolproof and should be used in conjunction with other analytical tools and methods.
On the other hand, fundamental analysis involves analyzing a company's financial statements, economic indicators, and other qualitative and quantitative factors to determine its intrinsic value. For example, Trend Trader may have analyzed BP's financial statements, industry trends, and management team to assess its long-term growth potential.
BP saw its Momentum Indicator move above the 0 level on December 09, 2024. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 88 similar instances where the indicator turned positive. In of the 88 cases, the stock moved higher in the following days. The odds of a move higher are at .
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where BP's RSI Indicator exited the oversold zone, of 29 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for BP just turned positive on November 15, 2024. Looking at past instances where BP's MACD turned positive, the stock continued to rise in of 44 cases over the following month. The odds of a continued upward trend are .
BP moved above its 50-day moving average on December 09, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BP advanced for three days, in of 311 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 257 cases where BP Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BP declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
BP broke above its upper Bollinger Band on December 09, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. BP’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. BP’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 72, placing this stock worse than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.520) is normal, around the industry mean (1.194). P/E Ratio (7.366) is within average values for comparable stocks, (24.146). BP's Projected Growth (PEG Ratio) (13.379) is slightly higher than the industry average of (4.841). Dividend Yield (0.045) settles around the average of (0.111) among similar stocks. P/S Ratio (0.534) is also within normal values, averaging (0.975).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a producer of petroleum, natural gas and related products
Industry IntegratedOil