BHP trades in the US, UK and Australia hence we generally have a very good indication where it’s likely to open every morning. This morning following solid gains in the US we anticipate the old “Big Australian” will commence trading above $50.50, less than 1% below its all-time high on the local market – not the case in the US due to FX changes.
However, subscribers should always remember that resources are cyclical businesses whose profitability is determined by the underlying commodity prices, all of which are currently very supportive for the likes of BHP. We remain bullish BHP but any aggressive rally towards the $US90 area on the ADR’s will switch our stance to a more neutral one as a correction to the post COVID rally will look increasingly likely.
MM is bullish BHP short-term
Add To Hit List
