Commodity Giant BHP Group Still Offers a Bullish Boost

Back on January we presented an inflation "portfolio" called BOOSTER.

The "B" in BOOSTER stood for BHP Group (BHP) . The company produces copper, iron ore, metallurgical coal, nickel and potash.

With a number of commodities soaring lately, a fresh look at BHP is in order.

In the daily bar chart of BHP, below, we can see that the shares have risen the past two months. Prices are trading above the rising 50-day moving average line. The 50-day line has recently crossed above the bottoming 200-day moving average line for what is commonly called a golden cross buy signal. This buy signal comes well off the September-November lows.

The On-Balance-Volume (OBV) line shows a positive trend from the middle of September as traders began being more aggressive buyers. The Moving Average Convergence Divergence (MACD) oscillator is bullish.

In the weekly Japanese candlestick chart of BHP, below, we see a constructive-looking picture. There is some chart resistance in the $75-$80 area but I suspect it will be broken. Prices are in an uptrend and trade above the bottoming 40-week moving average line.

Trading volume has been strong this year and the weekly OBV line has broken out on the upside to a new high. The OBV line is sometimes a leading indicator. The MACD oscillator is bullish and the candles are not showing us a top reversal pattern and no upper shadows.

In this daily Point and Figure chart of BHP, below, we can see a potential upside price target in the $94 area. A trade at $74 will refresh the uptrend.

In this weekly Point and Figure chart of BHP, below, we can see a $98 price target. Let's round up to $100.

Bottom-line strategy: Continue to trade BHP from the long side. Risk to $63. Add to longs above $74.

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