Short Term Sell On BHP

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

By Nick Linton-Ffrost

BHP Billiton ((BHP)) — Emerging Sell

Trading tactics

Open shorts with a move under 37.70 placing stops at 38.30. Target range between 36.00 and 36.50.

Rationale

BHP may be forming a topping pattern after achieving a medium term break target around 38.20.

The 38.20 target is derived from the break out of the two month structure and may create a decent reversal.

A move below 37.70 triggers a sell signal as it indicates the recent upside break from the rectangular pattern has failed.

Potential pull back targets are between 36.00 and 36.50. The view is negated with a move above 38.30.
 

 

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 27years experience.

 AFSL 319830 | Disclaimer

Reprinted with permission of the publisher. Content included in this article is not by association the view of FNArena (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.

Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" – Warning this story contains unashamedly positive feedback on the service provided.

Click to view our Glossary of Financial Terms