Technical Update -  BHP uptrend intact after earnings. Stock bouncing from support Technical Update -  BHP uptrend intact after earnings. Stock bouncing from support Technical Update -  BHP uptrend intact after earnings. Stock bouncing from support

Technical Update - BHP uptrend intact after earnings. Stock bouncing from support

Equities 2 minutes to read
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Today's Market Quick Take from the Saxo Strategy Team

BHP Group bounced from support at around 47 after earnings. If BHP closes back above 48.75 the uptrend resumes and is likely to take out January peak. If that scenario plays out a move to around 52.50 could be seen on the short-term. 1.618 projection is at around 52.57 and on the weekly 1.382 projection is at around 52.51.
On weekly we can see how the Double bottom target was reached illustrated by the two vertical arrows. There is no divergence on weekly RSI indicating a new high in BHP could have quite some legs to go.

If BHP closes the gap between 47 and 46.20 on the daily time period the key strong support at around 45 is likely to be tested. A close below the down trend is confirmed on both short- and medium term.

BHPaus d 21feb
Source all charts and data: Saxo Group
BHPau w 21feb

BHP (GBP) key support at 2,695. Uptrend intact but divergence on RSI. Close yesterday at 2,855 was a clear signal that that is the level BHPGBP must close above to extend uptrend.

BHPgbp d 21feb

RSI divergence explained: When instrument price is making a new high/low but RSI values are not making new high/low at the same time. That is a sign of imbalance in the market and an weakening of the uptrend/downtrend. Divergence or imbalance in the market can go on for quite some time but not forever. It is an indication of an exhaustion of the trend


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