The more we say markets are overbought, the more they ignore us. Of course, if we wait long enough we will be proven right.
A couple of charts, BHP daily and weekly.
The daily IMO can no longer be considered overbought, with the full stochastic now at 17.
There's been an MACD crossover, and Fib level is at 38.2%, the same place to which we regressed before taking off again late last month.
In a bullish environment as we are in now, that may be as low as it gets.
The 50 and 61.8% Fib levels are more typical, offering a landing at $30.60 to $29.70 respectively. The 50day sma at $31 may also offer support.
The weekly --we had a shortened week--gives the appearance of overbought, but on this longer time frame can stay like that for months without cause for concern.
Of concern though is the inability, so far, of the price to break through the 50 sma, as neither it could during the August rally after coming down from the all time high in May.
DMI has not crossed, but both lines are going down together, which may indicate sideways movement and red candles.
The candle is at the upper Bollinger, which of itself means not much on a weekly, although the band shows signs of turning down.
BHP Price at posting:
$32.45 Sentiment: None Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)