The financial press has covered the recent deal for nickel and copper supplies from miner Glencore (GLCNF) and automakers Volkswagen (VWAGY) and Stellantis (STLA) . I decided to check on the charts of metal producer BHP Group Limited (BHP) again. I recommended the long side of BHP back on Jan. 6.
Let's review the latest charts.
In this daily bar chart of BHP, below, I can see that prices corrected lower into May before turning higher. BHP now trades back above the 50-day moving average line and the 200-day moving average line. The trading volume has been active all year. The daily On-Balance-Volume (OBV) line has declined but I am watching for improvement now. The Moving Average Convergence Divergence (MACD) oscillator is hugging the zero line for now.
In this weekly Japanese candlestick chart of BHP, below, I see an "interesting" picture. This looks like a large triangle formation. Prices are expected to breakout on the upside. The weekly OBV line (unlike the daily line) has been rising the past twelve months. The MACD oscillator is only slightly below the zero line.
In this daily Point and Figure chart of BHP, below, I can see an upside price target in the $83 area.
In this weekly Point and Figure chart of BHP, below, I used a five box reversal filter and here the software shows me a $100 price target.
Bottom line strategy: Traders could go long BHP at current levels risking to $54. The $100 area is my price target.
