Trading Central has detected a "Diamond Top" chart pattern formed on BHP Group Ltd (BHP:ASX). This bearish signal indicates that the stock price may fall from the close of 46.52 to the range of 38.50 - 40.25. The pattern formed over 87 days which is roughly the period of time in which the target price range may be achieved, according to standard principles of technical analysis.
Tells Me: The price seems to have reached a top, showing signs of reversal as it has broken downward after a period of uncertainty or consolidation. The Diamond Top pattern begins during an uptrend as prices create higher highs and lower lows in a broadening pattern. Then the trading range gradually narrows after the highs peak and the lows start trending upward. When the price breaks downward out of the diamonds boundary lines, it marks a significant reversal to a new downtrend.
This bearish pattern can be seen on the following chart and was detected by Trading Central proprietary pattern recognition technology."
So writes "Trading Central". It all began two days ago - see here. Now the news is getting worse. Not that they need to be right: all it needs is enough people who BELIEVE they're right and it becomes self-fulfilling.
And this despite the prices for iron ore, copper, and crude oil being near all-time highs. Is this correction due to the large spike in the US dollar?
P.S. Subsequent closing prices:
17/6/21 $47.69 (Low $47.45/High $48.33)
18/6/21 $46.52 (Low $46.21/High $47.31)
21/6/21 $45.61 (Low $45.61/High $46.09) was this the bottom???
22/6/21 $46.68 (Low $46.33/High $46.89)
23/6/21 $47.16 (Low $46.80/High $47.45)
24/6/21 $47.60 (Low $47.36/High $47.79)
25/6/21 $47.90 (Low $47.77/High $48.10)
28/6/21 $48.40 (Low $48.04/High $48.54)
29/6/21 $48.06 (Low $47.65/High $48.12)
30/6/21 $48.57 (Low $48.27/High $49.10)
1/7/21 $48.22 (Low $48.18/High $48.74)
2/7/21 $48.55 (Low $48.16/High $48.59)
5/7/21 $48.45 (Low $48.21/High $48.58)
6/7/21 $48.85 (Low $48.64/High $49.36)
7/7/21 $48.80 (Low $48.01/High $48.81)
8/7/21 $49.66 (Low $49.38/High $50.03)
9/7/21 $49.48 (Low $49.11/High $49.63)
12/7/21 $51.05 (Low $50.87/High $51.33)
13/7/21 $50.70 (Low $50.70/High $51.61)
14/7/21 $50.96 (Low $50.73/High $51.22)
15/7/21 $51.53 (Low $50.78/High $51.66)
16/7/21 $51.87 (Low $51.27/High $51.91)
