article 3 months old

BHP: Breakout

Technicals | Nov 08 2022

This story features WOODSIDE ENERGY GROUP LIMITED, and other companies. For more info SHARE ANALYSIS: WDS

By MichaelGable

Despite the sharp moves lower at the end of last week, the S&P 500 Index still looks like it has support here and should head higher for the time being. In terms of the Australian market, the energy and material sectors have seen some solid buying support emerge.

Just as the media were obsessing over the iron ore price at a 2-year low, proper money was pouring into the major miners and energy stocks like Woodside Energy ((WDS)) are trading at their highs for the year.

Price action looks very positive for commodities, and they are worth a trade. This week's charts look at BHP Group ((BHP)).

BHP has been trading in a sideways range these past few months with no real direction.

Yesterday saw it break above the downtrend line (circled).

This suggests a new rally is underway and this is a buying opportunity. A movement back to $38 would mean that BHP is back to looking more "neutral", and a break under $36 would be a negative sign.

If BHP continues upwards from here, then we could potentially see it up towards $46 before the next consolidation phase.

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

Michael Gable is managing Director of Fairmont Equities (

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


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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