9lives - well at least the volatility makes for good...

9lives - well at least the volatility makes for good trading!

Assuming banks fall from here, then what is the outlook for resource stocks?

Using BHP as a proxy for resource stocks:
I note BHP's short term EMA on the weekly is at about $30 so it - might - hold on and close Friday at about $30 or even $32 perhaps. But its bounce looks too steep and suggests a fall back to $24 should inevitably follow as the lower bollinger is still down at about $24. I'd think this would have to hold (or possibly a low of $22) in the short/medium term though as $24 was support for about 1 year on the way up. Also, the weekly is very oversold - eg MACD -370 vs +380 at the highs.

What will be interesting will be the size of BHP's rally and therefore the implication for further falls in BHP and the overall market in the longer term.

So far we have already had a rally back to $32, so any break of $24 in the longer term suggests a longer term $16 target. But if $24 is broken then it will probably ending up falling all the way to the bottom at $12. So maybe that suggests a bounce/rally ultimately back to $36.

Just my ramblings. Lol