The old saying is that stocks take the stairs up but the elevator down, and today's elevator ride by BHP was to the basement: a freefall of 2.64% from Friday's closing price of $51.87 to today's $50.50. But here is what Trading Central had to say:
"Trading Central has detected a "Double Moving Average Crossover" chart pattern formed on BHP Group Ltd (BHP:ASX). This bullish signal indicates that the stock price may rise from the close of 50.50.
Tells Me: The price is generally in an established trend (bullish or bearish) for the time horizon represented by the moving average periods. Moving averages (MA) are used to smooth out the volatility or "noise" in the price series, to make it easier to discover the underlying trend. By plotting the average price over the last several bars, the line is less "jerky" than plotting the actual prices. In the double crossover method, a bullish event is generated when a faster moving average crosses above a slower moving average (21-bar MA crosses 50-bar, or 50-bar MA crosses 200-bar). In this state, the price is likely in an established uptrend. The opposite is true when the faster slips below the slower moving average, triggering a bearish event.
This bullish pattern can be seen on the above chart and was detected by Trading Central proprietary pattern recognition technology."
BHP's operational review for the year ended 30 June 2021 is due out tomorrow morning at 8.30. Let's hope it's a good one, so that we can claim up the stairs again. Goldman Sachs is very positive - click here.
