Odds Favour BHP Bounce

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

By Nick Linton-Ffrost

Odds turn in favour of a bounce

We expect BHP Billiton ((BHP)) will find strong support around the 29.50-30.00 level and bounce back towards 33.00 over the next 2-3 weeks.

Our view is based on three indicators which all point to the 29.50-30.00 level as a significant support level. Clearly the three lows around 30.00 should provide a decent technical support. We also expect the break target level around 30.00 which is derived from the break below 35.25 support improves the odds for a bounce.

In addition BHP appears to have traced out a five wave count lower from 39.50 which indicate the downside move may be due for a corrective rally given the length of wave 5 now approximates the length of wave 1.

Trading tactics

Wait for buy signals between 29.25 and 31.00 over the next week. A break above 30.90 should signal a higher low has formed as long as the 29.25 low holds.
 

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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