OK,Just wanted to start a new thread on the extraordinary...

OK,

Just wanted to start a new thread on the extraordinary collapse of Rio price on FTSE tonight an the implications for this on FTSE and Dow trading tonight, BHP share price and XJO.

I have attached below monthly charts for both RIO and BHP.

Now ignoring news/possible fundamental concerns (eg. BHP walking away from RIO bid, RIO high gearing), the charts of the two are remarkably similar. OK this may be due to the BHP offer tying them together but I don't believe this is the only reason.

My concern looking at these charts is that BHP is likely heading for the same fate as RIO. What is even more alarming for BHP IMO technically is it has bounced in 3 days from $20 to $28 equivalent tonight. If it retests $20 and fails, then a fall to the $12 base (equivalent to RIO's fall is technically on the cards).

The other point I wanted to raise for discussion is the immediate impact RIO's fall will have on the FTSE and Dow. Is this the driver for a new low into Friday?? Particularly if investors decide BHP is in a similar situation to RIO and BHP also collapses quickly down through $20.

I'm not saying that BHP is definitely going to $12 within a few days. Just that the similarity of the 2 charts suggest this is possible. An alarming call I'm making? Am I over-reading the situation? Maybe? Probably? But if we can see RIO fall 40% in a day is a similar % fall technically possible for BHP. Eg. a fall back from $28 equiv to $20 just 3 days ago is nearly 30%.

Fundamentally may seem to be nonsense but the BHP chart does suggest $12 will be hit at some stage its just when. Is BHP going to encounter cash flow/debt problems like RIO perhaps?

Just throwing this out there to hear people's views on the implications of RIO's fall tonight. None, minor or major?