Downside Ahead For BHP

This story features BHP GROUP LIMITED. For more info SHARE ANALYSIS: BHP

By Nick Linton-Ffrost

Near term rally before more downside

We are still working on the idea that after a rally towards 35.50, BHP Billiton ((BHP)) should form a near term top and roll back to 31.00.

Our view is based on a break signal which was triggered by the move below strong support at 35.25 in September. The implied target from this break is around 30.75. We suggest keeping an eye out for sell signals such as a lower high forming below 35.50 or 1-2 days trading below 33.30. While trading above 35.50 for more than 2-3 days negates our view.

Near term trade – open longs with a break above 34.15 placing stops at 33.50 and looking for a move to 35.50.

Trading tactics

Wait for sell signals over the next 5-10 days. Otherwise buy the upside break at 34.15 mentioned above.
 

Another trading idea from

Fifth Wave | fwtc.com.au                                               

FW generates over 150 Trading Alerts on the ASX100 each year. We are a subscription service specialising in short term technical strategies based on 27 years experience.

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