An extract from my Active Trading Plan for Thursday 15 July
BHP Group (BHP, 45673c)
Model (Automated) Comment: “Aggressive Buying But Do Not Chase. Look For Overshoot and Failure To Hold Highs To Short-Sell Back To The 8-EMA”
Analyst (Manual) Comment: Share is approaching two resistance zones: (1) declining trend line & (2) horizontal trend line (overhead supply area). ‘Inverted hammer’ candle suggesting possible exhaustion of upward trend. 7-day RSI at 74. Strong but approaching a ‘near overbought’ rank. Price extended from 8-EMA which may be a short/sell target Price may push into 46300c/46700c area before retracing.
Bottom Line: Nearing a potential overextended short back to the 8-EMA.
Note: No 'short' tag attached to this idea as the price may not be at the entry level as yet.