I'm bringing this up because of the importance of BHP to the general market. It's hard to imagine a bull market if BHP is in a bear market.BHP is looking good - it's formed a clear double bottom.
The Daily MACD still needs to cross above the Zero Line.
The Daily Slow Stochastic is registering overbought.
So we might get a classic process - the stock sells off mildly to work off the overbought status, reverses off the "valley" of the W formation - and then heads north with the MACD moving above the Zero line.
Of course - it might be a bull-trap. In which case, all bets are off. BHP will head south and so will our market.
It pays to wait. I'll miss some by being cautious - but the ones I get are usually rippers.
Cheers
Red
Hiya RedBacka... this will be interesting...
ReplyDeleteunlike the MACD signals which gave a clear sell based on divergence on the daily chart during the November to January period, I do not think we have had an equivalent buy occurring here and i am inclinded to beleive that this may indeed be a good shorting opportunity...
Time will tell of course.
;)