BP Could Go Extinct, Share Price CrashCompanies / Company Chart Analysis Jun 10, 2010 - 01:01 PM GMT
Chart 1 is a 30 year chart of British Petroleum. Key support going back to 1997 was broken on huge volume.
Chart 2 shows next support at 20, then 10.
Chart 3 looks like a short set up.
Comment: No price tag can be put on the worst environmental disaster of all time, but the legal and monetary liability of BP, which is self-insured, will engulf its balance sheet in red ooze until it chokes like a sea gull drowning in BP's oil slick.
CEO Tony Hayward, who wants his life back, shrewdly sold a third of his stake in BP on March 17 and paid the mortgage off on his mansion in Kent. His family is now under police protection. Look for BP to fall like a stone after unconscionable dividends are paid June 21; and if dividends are not paid, outraged investors will bolt. BP bonds are junk.
Had an Arabian, Russian or Venezuelan oil company done this off America's coast, the company's assets would be frozen, accusations of terrorism would be flying and American troops would be on the move.
By Daniel Bruno
Chartered Market Technician
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