BHP Shares Unshackled, Finally

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

Michael Gable of Fairmont Equities believes BHP Group shares have further upside left, after an already dizzying run since November

By Michael Gable 

Content included in this article is not by association the view of FNArena (see our disclaimer).

We've made a number of positive comments on resource stocks, most notably BHP Group ((BHP)), as recently as early November when it was still under $40.

This monthly chart now puts the recent move into perspective. BHP has now broken above a line of resistance which has been in place for over 12 years. With the general rule of thumb being that the longer the consolidation, the bigger the breakout, then BHP's move is only the start of a major rally.

Some may also look at price action of the last 12 years as a massive inverse head and shoulders. Those who try to extrapolate targets with these patterns may lead to believe that BHP has more than $20 upside from here. But take that with a grain of salt.

The major point is that BHP has broken above long-term resistance here and this means that the share price should have some decent upside ahead of it.

 
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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