Now It’s BHP’s Turn

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

By Michael Gable 

The S&P/ASX 200 Index edged higher last week and seems ready to continue the assault on the 6000 level. It is not making huge strides at the moment, as the banks aren't doing much of the heavy lifting. As mentioned on a few other occasions, the volumes traded during the last few months in the big banks has been uninspiring, so they will continue to lag for the rest of this month. Much of the heavy lifting is coming from energy and materials. We've been bullish on Woodside (WPL) for a while, and it now looks like BHP ((BHP)) is joining the party.

Today's report shows an updated chart for BHP.

We looked at BHP previously and noted that it was a good sign to see it congesting under the January high. This congestion seems to resemble that of a symmetrical triangle, with BHP breaking above that last Thursday on good volume. The last couple of days have seen the shares hold up well so we now believe that BHP is going to push through the January high now. This means that it should be trading above $30 before Christmas. We would have to move to a more neutral stance if for some reason BHP heads under $27 in the next few days.

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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