Falling Wedge Breakout + Drill News Surge — Eyes on $0.855 Pivot
🎯 BHM.AX: Falling Wedge Breakout Driven by Pinnacles Drill Intercepts ⛏️
Broken Hill Mines Ltd (BHM.AX) has staged a massive +12.4% intraday breakout, cracking the upper resistance line of a multi-month Falling Wedge pattern following high-grade silver-lead-zinc intercepts from its Pinnacles Phase 2 drilling program.
While news-driven momentum is strong, price is now approaching a critical structural pivot at $0.855 (previous major swing lows). Patience is required to confirm a clean daily close above this level.
🔑 Technical & Fibonacci Confluences
Structural Wedge Reversal:
Price has broken out of the descending compression channel between $1.160 and $0.515, backed by daily Break of Structure (BOS) signals.
Fibonacci Target Confluence:
Base Breakout Pivot: $0.840 – $0.855
0.618 Retracement Target: $0.920
127.2% Fib Extension Target: $1.130 (Confluences with the major historical supply node at $1.160).
161.8% Fib Extension Target: $1.240
Indicator Confirmation:
VectorVest DEW system shows an active BUY ("B") signal with price holding firmly above the 30-day WMA (~$0.700). MACD histogram is expanding steadily into positive territory.
📊 Tactical Execution Scenarios
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VERDICT: Bullish Trend Shift — Wait for Confirmation
🔵 Scenario A (Breakout Entry):
Wait for a daily close above $0.855 to confirm supply absorption before targeting higher Fib extension levels.
🟢 Scenario B (Pullback Entry):
Look for a controlled retest of broken wedge resistance around $0.750 – $0.770.
🛑 Risk Management:
Stop-Loss: $0.690 (Below 30 WMA & 0.382 Fib at $0.715)
Target 1: $0.920
Target 2: $1.130 (127.2% Fib Extension)
Target 3: $1.240 (161.8% Fib Extension)
⚠️ What Makes This Trade Wrong? (Invalidation)
A daily rejection at $0.855 resulting in a daily close below $0.690 invalidates the breakout structure, returning price to the wedge consolidation zone.
💡 Note: Never FOMO buy directly into overhead structural resistance! Let price confirm a daily close above $0.855 or catch the retest at $0.770 for an optimal Risk/Reward ratio. Capital preservation first!
Broken Hill Mines Ltd (BHM.AX) has staged a massive +12.4% intraday breakout, cracking the upper resistance line of a multi-month Falling Wedge pattern following high-grade silver-lead-zinc intercepts from its Pinnacles Phase 2 drilling program.
While news-driven momentum is strong, price is now approaching a critical structural pivot at $0.855 (previous major swing lows). Patience is required to confirm a clean daily close above this level.
🔑 Technical & Fibonacci Confluences
Structural Wedge Reversal:
Price has broken out of the descending compression channel between $1.160 and $0.515, backed by daily Break of Structure (BOS) signals.
Fibonacci Target Confluence:
Base Breakout Pivot: $0.840 – $0.855
0.618 Retracement Target: $0.920
127.2% Fib Extension Target: $1.130 (Confluences with the major historical supply node at $1.160).
161.8% Fib Extension Target: $1.240
Indicator Confirmation:
VectorVest DEW system shows an active BUY ("B") signal with price holding firmly above the 30-day WMA (~$0.700). MACD histogram is expanding steadily into positive territory.
📊 Tactical Execution Scenarios
==================================================
VERDICT: Bullish Trend Shift — Wait for Confirmation
🔵 Scenario A (Breakout Entry):
Wait for a daily close above $0.855 to confirm supply absorption before targeting higher Fib extension levels.
🟢 Scenario B (Pullback Entry):
Look for a controlled retest of broken wedge resistance around $0.750 – $0.770.
🛑 Risk Management:
Stop-Loss: $0.690 (Below 30 WMA & 0.382 Fib at $0.715)
Target 1: $0.920
Target 2: $1.130 (127.2% Fib Extension)
Target 3: $1.240 (161.8% Fib Extension)
⚠️ What Makes This Trade Wrong? (Invalidation)
A daily rejection at $0.855 resulting in a daily close below $0.690 invalidates the breakout structure, returning price to the wedge consolidation zone.
💡 Note: Never FOMO buy directly into overhead structural resistance! Let price confirm a daily close above $0.855 or catch the retest at $0.770 for an optimal Risk/Reward ratio. Capital preservation first!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.