Views Article – Sharenet Wealth

Share Picks, South Africa

BHP Billiton Plc: Remains Bullish

BOTTOM LINE: BIL has breached the upper slope of its long-term bull channel, which is also a long-term trend-line.

(Click image to enlarge)image1

Possible scenario:

In April, we recommended a long above 25,500cps as we anticipated gains to either the major trend-line (dated back to 2005), or the 28,315cps pivotal point. Last month BIL exceeded our target, but because the 3W RSI was mega-overbought, we suggested investors revise positions, or even close them if BIL should fall towards 25,500cps.

Instead, BIL has held above that level and has breached its long-term trend-line, resuming its previous uptrend. Another buying opportunity is presented above 30,140cps, with potential gains to 35,000cps. 

Alternative scenario:

Downside through 27,000 would mark a false break, and BIL could correct within its current bull channel, towards the dashed blue slope.



Moxima Gama
Technical Analyst, Sharenet

Moxima has a B.Comm Finance from the University of South Africa and is a certified Chartered Market Technician Level 2, currently completing Level 3. She has been a technical analyst for 10 years, working for BJM, Noah Financial Innovation and for Standard Bank as part of the Research Team in the Treasury Division of CIB. She now runs her own business, The Money Hub, and consults for Sharenet. Moxima has been rated as one of the top 5 technical analysts in South Africa and outperformed the market during the recent recession. She regularly makes an appearance as a guest on CNBC Africa and writes often for Finweek and Sharenet’s Views.

Read an interview with Moxima, or discover Moxima’s trading insights via Sharenet’s Technical Analysis Newsletter.

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