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BHP looks set for a run but you may have to be quick. The daily chart suggests BHP is somewhere near a wave five low:
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Volume (as measured by OBV) is not robust and to this point it seems there is not much support for a rally.
The weekly chart indicates we may see a wave five rally in coming weeks:
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The oscillator is well below zero, confirming that the move to wave five is unlikely to be a strong one. It will get most of the way but it will struggle, an outlook which is in concert with the OBV daily signal.
So we look for further confirmation in the form of Copper:
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This daily Copper chart suggests there could be further easing ahead. Again, note the very weak oscillator.
The monthly Copper chart also suggests easing:
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Watch closely to see if this comes back to zero. This could take some time and in the process there could still be strong moves higher and lower. This means you are going to find plenty of opportunities to get in and out of BHP and make money along the way.
It will be an options player’s dream.
Enjoy the ride
Tom Scollon
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