Chart Reviews of S32 and BHP

s32-dy-feb16 s32-oct-16 bhp-oct-16

A year ago this blog looked at the chart of BHP spin-off South 32 (top chart).

It showed an early change in trend. This proved to be a reliable alert as the share price climbed from 90 cents to a recent high of $2.56.

The second chart (of S32) shows an intact long-term uptrend, likely to continue, but there has been a bearish engulfing pattern after decline in the momentum of the rise. However today’s uptick may negate this signal.

On the other hand the parent company BHP in the lowest chart, is now showing technical evidence of improved sentiment breaking resistance at $20 in a trading range. The most recent action is an impulsive move higher carrying the RSI into the over-bought zone. A short-term corrective move lower is likely.

Might some investors now be taking profit on S32 and switching back into the Big Australian Miner, based on more favourable prospects?

Readers should not make investment decisions on the basis of technical features alone, before consulting their financial adviser(s)

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Categories: Chart Review

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