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BHP - Possible Short?

Discussion in 'Stocks 0-H' started by still_in_school, Feb 9, 2005.

  1. still_in_school

    still_in_school

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    BHP - Possible Short..

    Hi Guys,

    been away from the forum for a short while, though havent stopped trading.. just a few trading suggestions for tomorrow...

    BHP Chart...

    This morning open at $16.96
    Todays close at $16.63

    Have entered this position with bought puts.. $17.00 March Puts

    though exit targets are sharp 1-2 day continal drops to $16.04 to $16.00

    Retracement levels - 61.8 % - $16.34
    Retracement levels - 50.0 % - $16.04

    Cheers,
    sis

    ps.. will add some further technical indicators, plus some candle stick explanation..
     

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  2. still_in_school

    still_in_school

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    Re: BHP - Possible Short..

    On the technical chart below..

    * the candlesticks are showing a rejection/ or indecision of the market direction.. confirmation of this is normally by doji candlesticks.. to add further more accuracy the doji's in this chart example are both bullish and bearish candlestick patterns...

    * today candlestick pattern is a bearish dominant black candle..

    * candlestick patterns are pulsing along the upper bollinger band..

    * volume is indicating - low volume of trading over last couple days (this is typical for a bearish trade) buyers are holding onto there stock, in belief prices will hold

    * stochastics - have turned negative and have crossed a few days earlier..

    * RSI - have also turned negative.

    * the MACD which is not shown, has also turned negative and is als showing negative divergence..

    History also shows, that BHP will normally gap down from the mid point and base of the previous candlestick and quite accurately trades towards retracement levels..

    For this trade, possible trading instruments, could be Short CFD, Bought Puts, Written Calls or short selling...

    Cheers,
    sis

    ps.. please only take my charting and technical analysis as an assumption for possible future trades..
     

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  3. tech/a

    tech/a No Ordinary Duck

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    Re: BHP - Possible Short..

    Your a game man SIS.

    Maybe fortune favors the brave.
     
  4. still_in_school

    still_in_school

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    Re: BHP - Possible Short..

    Thanks Techa,

    BHP just manage to break through that $16.50 Support level.. still bearish out looks for BHP, through looking at a technical analysis angle.. BHP still has further more to go to expected retracement levels...

    Cheers,
    sis
     
  5. still_in_school

    still_in_school

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    Re: BHP - Possible Short..

    Hi Guys,

    just re-evaluated BHP chart & technical analysis, have exited out of my bought pulls..

    BHP did come very close to retracement levels.. though both BHP and RIO and the resources section is showing a bounce..

    might be pre-mature exits, but technicals are indicating otherwises...

    Cheers,
    sis
     
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