question for the chartists, page-3

Good morning all.

For a week or so the share price ignored charts showing BHP was over-bought, and went slightly up and sideways.

It took Friday for a gap up exhaustion, it would seem, to confirm this and a retrace should now occur this week.

Well, that's the theory.

Of the last 7 rallies: 5 ended with gaps up, 5 finished with red candles. That's what we had on Friday.

Virginia points out Friday hit the top Bollinger band -- another precursor of a reversal.

So how far down?

I agree with MDP's prognosis --around $29 as being plausible.

The 50% Fib of the rally, which is fairly close to the (yellow) 50 day moving average gives us arond $29.75.

A 61.8% retrace is $29.... A full retrace is back to $26.