Ever since they hit $54.06 on the 4th of August and I failed to sell up - or at least sell down - some of my many BHP shares, I've been beating myself up. Since then the shares have been as low as $35.56 as recently as 2nd of November.
What with the escalating trade war with China, Vale in Brazil coming back into production, and EVERGRANDE bringing on an implosion of the Chinese real estate bubble, I doubt we'll ever see $54.06 again, but it was good to read in yesterday's CommSec Daily Trading Alerts that ...
"... Trading Central has detected a 'Megaphone Bottom' chart pattern formed on BHP Group Ltd. This bullish signal indicates that the stock price may rise from today's close of 39.37 to the range of 42.60 - 43.40. The pattern formed over 47 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 recent broadening action tells us that trading has been out of control, but a breakout on the upside suggests we're starting a more decisive uptrend. With its broadening price swings, the Megaphone represents a market that's unstable and out of control. It typically consists of two successively higher highs between three lower lows, and the reversal signal occurs when the price breaks up above the second peak (the highest high) as a sign of a more decisive bullish move."
"Decisive uptrend." "Decisive bullish move." Yes, please!
