BHP Group Ltd. (Friday’s close US$51.91) declined from US$72.76 to US$18.46 (A-B), rallied to US$50.79 (C) and then remained in a horizontal range mostly between US$43.00 and US$52.00 in 2018. This price action produced a bullish technical pattern known as a V-Extended (dashed lines). The recent rise above the top of this formation (D) signalled a breakout and the start of a new up-trend.
Behaviour indicators including the 40-week Moving Average (40wMA) and the rising trend-line (solid line) confirm the bullish status. The stock is currently in the midst of a minor correction; only a sustained decline below US$49-US$50 would be negative.
Point & Figure measurements provide targets of US$59 and US$64. Higher targets are visible.
Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com