As usual, I did a screening on the US Stock market today. I found an interesting counter again in NYSE today. It is BHP Billiton Ads . It is trading in a down trending channel, it is now trading near the support and a break down strategy can be utilized.
Let’s take a closer look on its chart.
BHP has been trading in a downward channel since May. Lower high and lower low formation was observed, confirming the down trend. Plus, you can see that it is now trading below the 200d MA now, and 20d MA is cutting downwards across the 100d MA and 200d MA. Suggesting a downward pressure.
Key support was observed at 69.22. If breaking this low, it can head low further, I will be looking at a break down strategy on BHP.
Let’s say, if the price break the support and dive down, I assumed entry price at 3% down from key support of 69.22, which is 67. Potential loss will be 2.22 and profit target at 60.57 offering a potential profit of 6.43. Reward/Risk ratio is 2.9.
Pretty good reward/risk ratio plus technical inidicator is showing downward pressure, I will add BHP on my watchlist for shorting.
US Stock Market Picks Aug 3 - BHP
DISCLAIMER: This information is used for learning purposes only. It does not constitute an offer or solicitation to buy or sell. You should do your own analysis on top of my postings.
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