article 3 months old

Upside For BHP

Technicals | Dec 04 2018

By Michael Gable 

Two months have passed since the markets started to take a tumble and we are now seeing signs that investors are looking for reasons to be optimistic again. We may get a rally here followed by another dip, but the worst seems to be over. This gives investors a chance to make a trade here and sell into the strength and get ready to position once again to buy the next dip.

This week's charting section spots an opportunity in BHP Billiton ((BHP)).

The daily and weekly charts of BHP look a bit messy but price action becomes clearer on the monthly chart. We can see that $35 has been a major resistance level for BHP during the last five years (adjusted for the S32 spin-off). It has failed at that level again but we can see that the selling wasn't very heavy. The recent pullback has also sat on top of the prior low from earlier this year. Consolidating under this $35 level tells us that the shares are getting ready for an eventual push through it. If they do, that would set it up for a run towards $40.

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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