If you look at the chart below for BHP 3 years, you will notice the Bollinger Band starts of very narrow and gradually widens until its reached its most recent run and then suddenly expands. That expansion began early March and does not look like reversing anytime soon.
There are massive expectations for BHP to benefit from the:
1) Increase in commodity prices 2) The fall of the Aus. Dollar. 3) Iron-ore contract to be signed 4) Signing of the Uranium Agreement with China.
Not all clear sailing and Blue Sky.
However, given the importance of the above and with BHP heavily weighted on our market, it looks to me it will continue and in a very big way. That means our market is heading for a screamer.
BHP also mines plenty of Gold and has excellent Oil exploration.
However, all good things will eventually come to an end.
When "The POP" does happen it should be more like a Tsnami rather than a correction.
If that chart is anything to go by, BHP will race past $30 and RIO will follow suit.
IMHO!!!
Cheers markco2
DOW Price at posting:
0.0¢ Sentiment: Buy 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)