Opportunity In BHP

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

By Michael Gable 

The Australian market continues to trade through this symmetrical triangle that started in early June. Last week, we saw the banks spike up and hit the short-term targets that we highlighted last month as a trading opportunity. Not all banks have rallied here though. A few weeks ago, we highlighted weakness in Suncorp and that seems to be getting sold off now fairly heavily now. Yesterday we then saw our market threaten to break to the downside before finding a bit of buying support in the afternoon. It seems like it is only days away from finally making a decisive move.

In the US this week we get an interest rate decision by the US Federal Reserve alongside a lot of corporate earnings, and earnings season kicks off in Australia next week, so there is enough there to push us into some direction. This week we have taken a look at BHP ((BHP)).
 

 

BHP has started to show signs of wanting to trade higher. Since peaking in January, it has been trending lower, making a series of lower highs and lower lows. A couple of weeks ago we saw BHP trade above the May high, making its first "higher high". It is now easing back and we would expect it to now make a "higher low". This could occur somewhere near $23 as it retests the downtrend line. That would then be an ideal buying level for BHP.

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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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