BHP Billiton Limited (ASX:BHP) HEFFX Highlights

BHP Billiton Limited (ASX:BHP) HEFFX Highlights

BHP Billiton Limited (ASX:BHP) HEFFX Highlights

  • A former adviser to BHP Billiton and doyen of the Australian equity capital markets scene has launched an extraordinary attack on the strategy of the resources giant, including questioning its board appointment of Business Council of Australia president Grant King.
  • Brett Paton, who is now the chairman of Escala — a boutique wealth management firm that ­advises some of the richest people in the country — has written to Escala’s clients urging them to review criticism of the company by Elliott Management and Tribeca Investment Partners and take ­action to protect their ­investment.
  • BHP Billiton Chief Executive Andrew Mackenzie said on Monday he has not met with activist hedge fund Elliott Management since their talks in Barcelona last month and declined to comment on whether another meeting was scheduled.
  • Elliott, a New York-based fund that has built up a 4.1 percent stake in BHP, is pushing a three-point plan to collapse the company’s dual-listed structure, spin off its oil and gas assets in the United States, and boost returns to shareholders – all of which BHP has rejected.

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: Downwards.

Short term: Prices are moving.

Intermediate term: Prices are ranging.

The projected upper bound is: 24.40.

The projected lower bound is: 22.24.

The projected closing price is: 23.32.

BHP BLT FPO closed down -0.320 at 23.340. Volume was 1% above average (neutral) and Bollinger Bands were 48% narrower than normal.

Open        High        Low           Close        Volume
23.410     23.510     23.300     23.340     8,196,597

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period        50-period      200-period
Close:                       23.92               23.99              24.08
Volatility:                21                     28                    34
Volume:                   7,782,832      8,027,909      8,561,296

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.

Summary
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 3.1% below its 200-period moving average and is in an downward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of BHP.AX at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on BHP.AX and have had this outlook for the last 1 periods.

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.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 38.2489. This is not an overbought or oversold reading. The last signal was a sell 13 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 41.33. 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 89 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 -165.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 2 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 4 period(s) ago.

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John Heffernan

John Heffernan is a Junior Analyst at HEFFX. John is studying Economics and is a contributor on equities at Live Trading News.

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