BHP Billiton Limited (ASX:BHP) HEFFX Highlights
- BHP Billiton Ltd. (BHP.AU) said Wednesday it plans to step up activity in the U.S. oil-and-gas shale fields that activist shareholders are agitating for the resources company to offload.
- The move is expected to revive flagging onshore production volumes even as BHP continues to invest in conventional energy operations and exploration in the Gulf of Mexico and other basins while seeking to sell some unwanted U.S. shale acreage.
- BHP has been forced to defend its strategy after New York hedge fund Elliott Management Corp. led a series of attacks in recent months, calling for a sweeping overhaul of the world’s largest-listed mining company and criticizing the billions of dollars spent on acquisitions and mistimed share buybacks.
- The push by Elliott and other shareholders has drawn BHP’s petroleum division into the spotlight and revived questions about the billions of dollars spent picking on onshore U.S. assets at the height of the natural-gas boom.
- Activist investor Elliott has slammed BHP Billiton’s plans to develop a giant potash mine in Canada, warning it could be as “disastrous” as its foray into US shale.
- Elliott Advisors, which has been campaigning for an overhaul to BHP’s strategy and board, attacked recent comments by the miner that it would seek to build its Jansen project in Saskatchewan province. BHP has set aside $3.8bn (£2.9bn) to develop the mine, though the total cost has been put as high as $14bn.
BHP Billiton Limited is a global resources company. The Company is a producer of various commodities, including iron ore, metallurgical coal, copper and uranium. Its segments include Petroleum, Copper, Iron Ore and Coal. The Petroleum segment is engaged in the exploration, development and production of oil and gas. The Copper segment is engaged in mining of copper, silver, lead, zinc, molybdenum, uranium and gold. The Iron Ore segment is engaged in mining of iron ore. The Coal segment is engaged in mining of metallurgical coal and thermal (energy) coal. Its businesses include Minerals Australia, Minerals Americas, Petroleum and Marketing. The Company extracts and processes minerals, oil and gas from its production operations located primarily in Australia and the Americas. The Company manages product distribution through its global logistics chain, including freight and pipeline transportation. Its businesses include Minerals Australia, Minerals Americas, Petroleum and Marketing.
Overall, the bias in prices is: Sideways.
Short term: Prices are stalling.
Intermediate term: Prices are trending.
By the way, prices are vulnerable to a correction towards 24.29.
The projected upper bound is: 25.37.
The projected lower bound is: 23.64.
The projected closing price is: 24.51.
BHP BLT FPO closed down -0.480 at 24.490. Volume was 12% below average (neutral) and Bollinger Bands were 46% wider than normal.
Open High Low Close Volume
24.600 24.620 24.390 24.490 7,619,060
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 24.89 23.83 24.53
Volatility: 16 23 32
Volume: 7,167,335 8,880,446 8,723,218
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
BHP BLT FPO gapped down today (bearish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
BHP BLT FPO is currently 0.2% below its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect moderate flows of volume into BHP.AX (mildly bullish). Our trend forecasting oscillators are currently bullish on BHP.AX and have had this outlook for the last 11 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 29.8781. This is not an overbought or oversold reading. The last signal was a sell 3 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 54.93. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 3 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -34. This is not a topping or bottoming area. The last signal was a sell 3 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 16 period(s) ago.