BHP Group Ltd. (BHP) is among the world's top producers of "stuff" including iron ore, copper, nickel and metallurgical coal. Let's check out the charts and indicators.
In the daily bar chart of BHP, below, I can see that the shares are making a new high for the recent move up. The bigger picture over the past year may be described as a broad sideways affair between $48 on the downside and $70 on the upside. The shares currently trade above the rising 50-day moving average line and flat 200-day line.
The On-Balance-Volume (OBV) line has turned up from a low in early November. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but poised for an upside crossover and new outright buy signal.
In the weekly Japanese candlestick chart of BHP, below, I can see that the sideways market environment has been going on for the past two years. Trading volume has been elevated for the past 18 months or so.
The weekly OBV line has moved up since late 2021 and is very close to making a new (and leading) new high for the move up. The MACD oscillator is in a bullish alignment above the zero line.
In this daily Point and Figure chart of BHP, below, I can see an upside price target in the $86 area. A trade at $67 should refresh the uptrend.
In this weekly Point and Figure chart of BHP, below, I used a five-box reversal filter, which yields a longer-term price target in the $137 area.
Bottom-line strategy: The rally in BHP may be getting ahead of itself so I would recommend only buying strength above $67 and above $72. The $137 area is my long-term price target. Risk to $60.
