BHP Group To Explore New Territory Of $53?
BlackBull Markets | Aug 14, 2022 11:16PM ET
This week is one of the busiest for the Australian Securities Exchange, with many of its biggest names delivering their respective earning reports. Among those reporting is the country’s largest mining company, BHP (ASX:BHP). BHP is expected to deliver its FY2022 results on 16 August 2022.
In addition to BHP’s results, the miner announced an AU $8.4 billion to acquire OZ Minerals (ASX:OZL) last week. As OZ Minerals have already rejected the take-over offer, additional rounds of bids will likely follow over the next week or two.
The monthly chart indicates that BHP is currently in a bullish trend and has tested a key resistance just above $48 a share twice in the past month and a half.
BHP is currently trading inside a parallel channel, and it looks like it might be about to bounce from the support, in confluence with the 50-DMA.
Fibonacci extension levels indicate that the price might reach an all-time high of $53, if bullish fundamentals continue.
From the perspective of the daily time frame, BHP looks a little more vulnerable with the suppression of iron ore prices, one of its primary exports. It was only last month that the mineral rebounded from a multi-month low, from $101 USD/T to $110 USD/T but is still contending with the dark clouds hanging over the Chinese construction sector. However, iron ore is more on the side of oversold rather than overbought according to the RSI indicator.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.