A lot of discussion as to the direction of BHP. Given the fact that metal prices are up gives BHP strength, but if I were to consider the current price trends of copper, for one, the technical indicators show a downtrend in its price. Everything indicates a continued downtrend, but also suggests that copper is oversold. Given the housing downturn in the US, and the likely imminent fall in copper prices, I would have to predict that BHP is ready for a further drop. The support levels would still be 25.55 or thereabouts, however I think BHP has the potential to drop even further until later in december given the technical data. Having said that, unless you are in the market for short durations, it would certainly represent a good long term buy at the $25.70-$26 mark.
So my thoughts: Short term - BHP will drop further Long term - should sit mid $30's by february.
BHP Price at posting:
0.0¢ Sentiment: ST Sell Disclosure: Held
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