BHP Billiton (BHP) has doubled this year from its nadir but further gains are possible after a shallow pullback. I would use a near-term pullback to buy or add to longs.
One of the three points of the logic behind technical analysis is that prices trend. They are not random. This daily chart of BHP, below, clearly shows that prices trend.
BHP is above the rising 50-day and the rising 200-day moving average lines. The daily On-Balance-Volume (OBV) line bottomed in early 2016 and has continued higher all year confirming the uptrend with aggressive buying. Recently, in October, November and early December, as prices made higher highs the 12-day momentum study made lower highs.
This difference between the price action and the momentum study is called a bearish divergence and suggests or foreshadows that prices could stall or even pullback to $36 or a tad lower. With the overall strength in BHP, I would consider this kind of shallow pullback a buying opportunity.
In the three-year chart of BHP, below, we can see both the big selloff of 2014/15 and the recovery. BHP is above the rising 40-week moving average line. The weekly OBV line has risen right along with the price action.
The weekly MACD oscillator has been bullish since July and is still bullish.
This Point and Figure chart of BHP, below, shows both the downtrend and the new uptrend.
The price objective derived from the "count" of the price action yields a target of $48. A close below $32 on our daily chart would make me re-examine my bullish forecast.