BHP (Friday’s close US$73.46) traded above a rising trend-line from 2016 to 2019 (dotted line), then settled in a horizontal trading range mostly between US$47 and US$59 (dashed lines). There was a temporary dip last March (A), but it quickly reversed and returned within the trading range. The subsequent rise above the top of this range signalled a breakout and the start of a new up-trend toward higher targets (B).
Behaviour indicators including the 40wMA confirm the bullish status. A minor correction toward ±US$60 would provide a better entry; only a sustained decline below US$53-55 would be negative.
Point & Figure measurements provide a target of US$74. The large trading range (dashed lines) supports higher targets
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Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com
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