BP Stock Forecast: An End to the Oil Spill on BP’s Books

BP Stock Forecast

I Know First supplies financial services, mainly through stock forecasts via their predictive algorithm. The algorithm incorporates a 15-year database, and utilizes it to predict the flow of money across 2000 markets. The self-learning algorithm uses artificial intelligence, predictive models based on artificial neural networks, and genetic algorithms to predict money movements within various markets.

The algorithm produces a forecast with a signal and a predictability indicator. The signal is the number in the middle of the box. The predictability is the number at the bottom of the box. At the top, a specific asset is identified. This format is consistent across all predictions. The middle number is indicative of strength and direction, not a price target. The bottom number, the predictability, signifies a confidence level.

I Know First recently published a bullish article on Seeking Alpha about BP. Having explained how I Know First’s algorithm works, it is worthwhile to see if the algorithm agrees with the bullish fundamental analysis of the company. The three-month and one-year forecasts for the stock are included.

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The above forecast is the most-recent forecast from July 21st 2015 and are for the long-term periods of three months and one year. The forecasts are highly bullish, with strong signal strengths of 22.53 and 33.18 respectively with predictability ratings of 0.6 and 0.58. The algorithm correlates with the fundamental analysis in which BP is finally emerging from their oil spill disaster just in time to successfully manage their business in the wake of the low oil prices and the U.S. – Iran nuclear deal.

Positive signal strength does not mean investors should automatically buy the stock. Dr. Roitman, who created the algorithm, created rules for entry for a stock such as The Home Depot. Using this trading strategy, an investor should buy a stock if the last 5 signal strength’s average is positive and if the last closing price is above the 5-day moving average price. When both of these conditions are met, it is a good time to initiate a position in the stock.