Like other material names, BHP Billiton (BHP) was hurt in the past two years as global demand weakened, prices declined and the greenback gained.
That is old news and markets are forward looking. Let's look at the charts of BHP and see what they might be telling us.
In this daily chart of BHP, above, we can see a January 2016 low. In February, March, and April we can see a pattern of higher lows and higher highs -- in other words, an uptrend. In the past six weeks, BHP has been trading in a relatively tight range.
The On-Balance-Volume (OBV) line moved up in March and April as prices trended higher, but has since flattened out. Momentum shows a bullish divergence in May and June.
In this three-year weekly chart of BHP, above, we can see the big decline that shareholders suffered from its 2014 zenith. More recently, BHP has been crossing above and below the 40-week moving average line. This long-term trend-following indicator is now turning flat from down. The OBV line on this weekly timeframe is trying to move up.
The Moving Average Convergence Divergence (MACD) oscillator generated a "cover shorts buy signal" and has come up towards the zero line. Crossing the zero line would be an outright buy signal for BHP. If BHP can make two consecutive closes above $31, it should be enough proof that prices can move up. A close above the April highs would show additional strength.