Planet Wealth - Australian Stock Market Education » Sell Signals with Lower Peaks http://planetwealthblog.com.au We are a stockmarket investment company that educates people on the strategies we use to create both income and capital growth. Mon, 06 Sep 2010 05:09:57 +0000 en hourly 1 http://wordpress.org/?v=3.0 Sell Signals with Lower Peaks http://planetwealthblog.com.au/sell-signals-with-lower-peaks/ http://planetwealthblog.com.au/sell-signals-with-lower-peaks/#comments Wed, 04 Feb 2009 13:07:37 +0000 Planet Wealth http://planetwealthblog.com.au/?p=272
Sell Signals with Lower Peaks

The Resources sector is one that has had a hard fall in this bear market. Companies that have always been seen as good stocks to buy are not fairing too well.

BHP has been a popular stock in the past. Let’s take a look at what this stock is doing right now. As seen in the chart below, for the last 12 months it has been in a down trending channel. November and December saw BHP pushing higher, only to hit the top of the channel and a major resistance line at the beginning of the year. This channel and resistance has now been forcing the stock back down resulting in Lower Peaks (LP) and Lower Troughs (LT), indicating the sellers have taken control once again. There is a small amount of short term support at around $28.00. If the stock moves through this , it is likely to $25.00, the next major support.

(click on image to enlarge)
030209 bhp Sell Signals with Lower Peaks

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