BHP Shares Ready For Another Big Move (Up)

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This story features BHP GROUP LIMITED.
For more info SHARE ANALYSIS: BHP
The company is included in ASX20, ASX50, ASX100, ASX200, ASX300 and ALL-ORDS

Fairmont Equities' Michael Gable suggests BHP Group shares are a buying opportunity after breaking above resistance near $61.

By Michael Gable 

Over the past few weeks, we had highlighted the US Federal Reserve interest rate decision as the possible catalyst that could get markets moving higher again.

We noted the breakout in the S&P500 Index, the bullishness of the S&P/ASX200 Index, and the negativity of the US dollar with its positive effects on precious metals and other commodities.

That all seems to be playing out now with the Australian market now breaking higher (and confusing many people along the way) and gold and silver prices rallying strongly.

After a period of consolidation, we now expect resource stocks to enter their next bullish phase and those that missed the “rotation” into resources last year now have a second chance. 

Today, we offer a technical view on BHP Group ((BHP))

We have looked at BHP on several occasions in the past year and have been positive on the stock, most recently in late April.

After rallying to new highs in June, the shares then pulled back to take a breather. It then spent the next month trading sideways with a very clear resistance line near $61.

The range was also tightening up as it got closer to starting the next big move. That big move has now started, with BHP breaking above resistance last week.

BHP is a buying opportunity here and it should trend to new highs. Initial stops can be considered just under $60.

Content included in this article is not by association the view of FNArena (see our disclaimer).
 
Michael Gable is managing Director of  Fairmont Equities (www.fairmontequities.com)

Fairmont Equities is a share advisory firm assisting Private Clients with the professional management of their share portfolio. We are based in the Sydney CBD but provide services to private clients across Australia. We believe that the concepts of fundamental analysis and technical analysis of stocks are not mutually exclusive. Regardless of whether you are a trader or long term investor, combining both methods is crucial to success. As a result, the unique analysis of Fairmont Equities is featured regularly in the media such as Sky News Business, CNBC, The Australian Financial Review, and the ASX newsletter. Contact us for a free trial of our research and information on our portfolio management services. 

Michael is RG146 Accredited and holds the following formal qualifications:

• Bachelor of Engineering, Hons. (University of Sydney) 
• Bachelor of Commerce (University of Sydney) 
• Diploma of Mortgage Lending (Finsia) 
• Diploma of Financial Services [Financial Planning] (Finsia) 
• Completion of ASX Accredited Derivatives Adviser Levels 1 & 2

Disclaimer

Fairmont Equities Australia (ACN 615 592 802) is a holder of an Australian Financial Services License (No. 494022). The information contained in this report is general information only and is copy write to Fairmont Equities. Fairmont Equities reserves all intellectual property rights. This report should not be interpreted as one that provides personal financial or investment advice. Any examples presented are for illustration purposes only. Past performance is not a reliable indicator of future performance. No person, persons or organisation should invest monies or take action on the reliance of the material contained in this report, but instead should satisfy themselves independently (whether by expert advice or others) of the appropriateness of any such action. Fairmont Equities, it directors and/or officers accept no responsibility for the accuracy, completeness or timeliness of the information contained in the report.
 

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