BHP looks to be forming a possible H & S at a strong resistance, looking at a move back to the longer trend of $34 or $35, before continuing its uptrend. ill also be looking at a close below the middle Bollinger band before entering this short.
Some times the slow moving obvious trades are the most profitable. BHP has been in an up trend for a good few years now and now it’s hit a resistance level. If it cracks it, a 20% appreciation to $46 isn’t unreasonable. Otherwise a drop to $36 is likely.
BHP - Will it break through old resistance area ?
BHP has been having such a good run of late, I thought I would have a look at much longer time lines and you can see it is entering this really interesting resistance pocket. I would probably want to see it crack $40 before making a strong play at it, but might be worth a watch.
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BHP has three swipes to the high and has accumulated there for quite some time, three levels are seen. BHP will most likely break past perceived resistance, maybe accumulate for a few days, and then drop.
Trading in a tight channel and it looks a turn to the downside is quite likely, expecting if we break below the channel to fall into the blue box which would have us in the range of $29.27-27.44 before seeing a possible bounce up.
BHP for the last two years has been quite the bullish pick of the ASX, after it's bear run from late 2014 it was an obvious investment for the long haul trader.
Now into late 2018, we can see that price is currently retesting structure at the range of DEC 2013 and JUL 2014. Currently ranging in the structure zone as displayed, accompanied by an RSI divergence,...
BHP share prices fell below the price channel in today's trading session and now slipping into a bearish boundary. BHP share prices will need to stay above its 500 EMA line to avoid falling further.
Potential future support and resistance are marked on the chart
- Consolidating market : but within a Bullish market
- Coming down into an area of interest of support
- looking for T1 at 35's
- Stops below 31's
- Note: Its interesting to see these moves are made between 1-2 months apart.