Apache Purchasing Some of BP's Assets

BP's Tony Hayward (who the company says is not stepping down) said that the company "achieved an excellent price for a set of properties that are worth more to others than to BP. This is a good first step which underlines our ability and determination to get maximum value for everything we sell." BP added that it is looking to sell assets in Vietnam and Pakistan.

Technically, Apache is attempting to rebound off its year-to-date nadir (chart available here). In fact, it appears that the equity may have formed a double-bottom in the $82 region. This technical formation could signal that the shares are ready to rally. A rally is exactly what the stock needs, as the round-number $90 level rests overhead. From mid- to late-August, the $90 level acted as resistance, but then it flipped roles and acted as support. We could see this pattern repeat itself if given the chance.

On the other hand we have BP, which is in the midst of a rather pronounced slump (chart available here). The stock has rebounded since the end of June, but the shares are still wallowing in the $35 region. These shares need more than a gentle nudge high, and I am not sure that this sale will do the trick. Does this mean the shares are stuck in their current position? Well, with news flowing in on a regular basis, we could see a rather positive reaction to perceived good news. Such a situation could kick-start the stock.