charting bhp, page-60

Nice charts and justified views for BHP being 'thrown' around here. For my contribution I think BHP is coming into and important zone(pivot-point) that should determining the next major % move in the L/T. All my following charts highlight why I think the $32.50 - $31.30 zone is a strong 'decision' area for BHP investors/traders alike. The 1st chart is a LOG chart, going way back to the 1987 pre-crash high/low range, that I believe the trendlines shown are more than useful. The extension of the trendline from the pre-crash high through the mid 1995 high comes in ~ $31.87(the same level as the 38.2% retrace from the 1987Low to 2008 all-time High). Since it was broken(on the upside again) in mid 2005 it has only been breached once (briefly for 1 week at the GFC crash low in Nov. 2008) but was the suppt.line for BHP's lows last July. We are now again fast approaching this trendline and, of course, the question here is whether it will continue to supply good suppt.(and indeed a spring-board level for our next major upthrust)?

The 2nd chart, a Weekly A.P. Chart, with its two bullish A.P.'s(green and blue) and two bearish A.P.'s(yellow and red) again highlights the same potential support zone. Note the confluence of A.P. tynes all nearby + the two Fibonacci retrace levels + strong horizontal chart pivot-point ... all falling within this zone.

And closer still, the daily A.P. Chart, shows possible support nearer to the high-end of my $32.50 - $31.00 range suggested on the L/T charts. Obviously, the break below a higher old suppt./resist. level at $33.68 earlier this week, and a strong rejection at the back-test of this level today, is of S/T concern BUT the action over the next few trading day's(to 1 week) should clarify whether or not the two A.P. tyne supports just below present levels are going to halt the present weakness and give us our initial clue of a possible Swing Low being in place. This is what I favour...at least in the S/T...but with a proviso we don't gap down over the (green) lower-tyne on Tuesday/Wednesday. That, I would see as a strong signal for a test nearer to the recent $30.09L which would ultimately "stirs the L/T Bearish gastric juices".