Technical analyst Zak Mir has said that BP plc (LON:BP.) is only “just getting started” and believes there is headroom to add another 20% to the current share price.
The share price has rallied hard over the course of 2016, gaining a third in the last six months alone, which Mir puts down to solid fundamentals.
“Near-term, most of the fundamentals have been positive and it’s trying to put a line under the Gulf of Mexico issue,” he said.
He also pointed that all of the FTSE companies who report in dollars, like BP, have received a handy boost from the post-Brexit decline in sterling.
Speaking in the latest edition of TIP TV’s Proactive Investor bulletin board series, Mir is now targeting upwards of 500p for BP.
If the stock holds above the 440p mark, he reckons this potential upside could be achieved within the next month or two.
“While we’re above 440p, I’m looking for at least the highs of the year to be revisited. The technical target here is at the top of that rising trend channel from June, around the 530p area.”
Mir also claimed that the stock can drag the FTSE 100 higher just on its own.
“Given how heavy this stock is in the FTSE 100, that [price growth] should be enough to take the FTSE over 7,000 just in its own right.”