The world’s largest listed mining company has turned a corner. Better global growth prospects have investors contemplating their exposures. Dividend yielding stocks are at the heart of many re-built portfolios,and despite recent rises in share prices still make a sound investment case. Investors seeking to expand their exposures to include growth stocks could do a lot worse than examining BHP Billiton.
BHP Billiton is diversified both geographically and across the commodity spectrum. The three highest revenue generating divisions are copper, iron ore and energy – the most important commodities for industrial growth. Recent rebounds in these commodity prices appear to drive the turn around in BHP’s share price:
BHP – Weekly – The Big Picture
Through the middle of 2012 BHP’s shares put in a “rounding bottom” on the weekly chart. This is a down trend reversal pattern, reflecting slowing selling interest and then increasing buying interest. An up trend has started. The question for investors and traders is when to join the trend?
BHP Billiton – Daily
In recent trading, BHP has corrected. The pull back to the trend line also reflects a 38.2% Fibonacci retracement. Investors with longer time frames may find this an opportunity to join the “big picture” trend. While some traders may wait for moves up from this level to confirm, I’ve seen enough, and am looking at the following trade: