tradersams blog

my on going paper trade of BHP – making me wish I backed this one… but anyway, on with the next installment.

bhp last friday, daily

Looking at the chart to the right, BHP has come up strongly from the bounce off support which showed my short position failed.  Since then, the share has made strong movements to the upside, in line with the ASX all ordinaries.

The price is now just shy of possible resistance from the recent minor high seen to the left of the graph.  Should that resistance prove weak we can expect BHP to push strongly upwards.  Too close to the point now to enter – wait for confirmation of a penetration to the upside.

Should resistance be found, it would be wise to sit out and see the strength of the move to the downside.