BHP Chart

Right, This is going to take a year or so to play out so that's plenty of time for me to back track if i fckd up.


There is an elliot wave pattern running through those two purple trend lines I've not drawn them in but I'm too much of a noob to get them drawn in right so I left them out. I think BHP has left the final consolidation phase of the cycle and I think that this leg up is going to be a Wave 3 run up. So that's a long one hopefully, I've got my target there as a conservative mark because that was the final point of resistance that really slapped it down. I think its more significant that the line of support that's below it because as I suggest, it never held the price as upward resistance except once.

Macroeconomically speaking, copper is looking to be a big winner in the coming years if electric vehicles take off as predicted. Now if it weren't obvious, BHP and copper move like two lovers in love.

Copper is the orange overlay. I've purposely lined up the chart to this point because for this time period the movements are damn near perfect. It would be therefore safe to say if you think copper is going to do well, you shouldn't be pulling cables and pipes out of building sites at midnight; save your breath and buy BHP instead. Now lets have a closer look at copper itself before I zoom in on the pointy end of that BHP chart I drew.

Ahhh Scallops. I am a Tom Bulkowski student. A poor one mind you, because I could spot the scallops but the only pattern I see at the pointy end of the PA is maybe a triple bottom, but I'm not sold. Can anyone identify him for me? Anyway, copper looks like its running nicely up that trendline and is caught in a congestion zone at the moment., with a slight bump upwards, but no break. Our break will be when it pops above the middle resistance mark. Be aware, I've no idea why its only telling me % moves. There's obviously something playing around in the background, and this is a new set up for me. The cross of that MA tells me this could be a bull market beginning but who knows anyway right?

Right, so my little triangle has been broken, but I would watch for a throwback until it is clearly above 32.10. The 200MA has been smashed by both my 20 and my 50 so this could have legs.

Moral of the story is, I'm waiting for a 32.1 on BHP and to back that decision up a break above 3.27 on copper. And then I'm going in for a target of ~$38.0 for BHP.