BHP First-Half Profit Surges 72% as Prices Rise
Comment of the Day

February 15 2011

Commentary by David Fuller

BHP First-Half Profit Surges 72% as Prices Rise

David Fuller's view Here is Bloomberg's report on BHP, a share of interest to many subscribers and which is the seventh largest holding, by weighting, in my personal long-term portfolio. It was released after the close on Wall Street.

Today's interesting charts - Price charts are our reality check.

USD/JPY is still rangebound but with more upward than downward daily dynamics, indicating a potential base. A break back under ¥83 is now required to suggest more than temporary resistance near the November and December highs. Furthermore, a break beneath ¥81 would now be required to check the sequence of rising lows, questioning recovery potential from the historic trough.

Japan's 2nd Section Index (monthly, weekly & daily), which often leads, may be completing a large Type-3 (ranging, time and size) base formation as taught at The Chart Seminar. A decisive break above the September 2009 and April 2010 highs, followed by a consolidation above those levels would provide additional evidence of medium-term recovery potential.

Gold bullion is edging higher following its mean reversion reaction and consolidation towards the medium-term upward trend represented by the rising 200-day moving average. A close beneath $1300 would now be required to seriously question current scope for sideways to higher ranging.

Wheat's downward dynamic today may have checked upward momentum for the near term. However a decline back beneath $8 would be required to question seriously current scope for additional gains, suggested by underlying trading, over the medium term.

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