tradersams blog

bhp - breakout (failed) ascending broadening wedge?

BHP: trade idea.

The graph to the right is BHP from today.  The price action today is a confirmation of the failure of an ascending broadening wedge.  From my chart patterns bible I can see that these don’t usually give a large fall, however a fall is expected.  I am interested in taking this short trade, but given my view of the all ords at the moment I’ll sit out for a day or two whilst I see what the flavour is on the ASX.

ASX All ordinaries (weekly)

Looking at the ASX:XAO (to the right) the graph is on the cusp of its next ‘decision point’ or move.  If the graph were to fall out of the bands I’ve sketched I would look to short soemthing, and at the moment, BHP could fit the bill.

Of course – until I commit a cent, this is all just an idea…

Remember – wait for confirmation of a move, in line with the overall market.