Technicals | Apr 11 2012
BHP Billiton ((BHP)) shares are on the verge of carving out a negative signal on price charts, reports the TechWizard. Over the past six months technical support at $34 has managed to withstand selling pressures and keep the BHP share price above support. Alas, today (Wednesday) the share price has finally tumbled below $34. The consequences? The Wizard believes closing below the $34 mark might well trigger more selling as it marks a deterioration of the technical picture for the Big Australian.
Making matters worse is the Wizard believes there's no genuine technical support to be found until the $28 mark, suggesting BHP shares might be in for a rough ride in the short to medium term.
All in all, for the shares to decisively change the current bearish picture BHP shares will have to rise above $36 (20 Moving Average), reports the Wizard. At this point in time there's no indication whatsoever this might be achieved, hence why the Wizard sticks with a hands-off view for now.
The TechWizard is the pseudonym of Scott Morrison, whose experience in financial markets exceeds twenty years. Morrison operates his own website nowadays at www.techwizard.com.au. All views expressed are the TechWizard's, not FNArena's (see our disclaimer).
Technical limitations
If you are reading this story through a third party distribution channel and you cannot see charts included, we apologise, but technical limitations are to blame.
