So far, this year's been par for the course for shareholders of $123 billion mining stock BHP Billiton (BHP). Shares have climbed around 8.8% so far this year, strong performance that essentially mirrors the gains we're seeing in the broad market.
But BHP could be on the verge of a bigger move in March. Here's why.
Right now, BHP is forming an ascending triangle setup with resistance at $83. An ascending triangle is a bullish price pattern that can be spotted by a horizontal resistance level acting as a "price ceiling" for shares, with uptrending support below; a breakout above that $83 resistance level sends a strong buy signal for shares of BHP.>>5 Energy Stocks Funds Love Right Now Typically, the ascending triangle pattern is a continuation pattern (that is, it occurs in the process of an uptrend). In this case, though, BHP is forming an ascending triangle at the bottom of a downtrend. Despite the different positioning, the trading implications are exactly the same for this setup. Adding to our confidence in this setup is the fact that momentum, as measured by 14-day RSI, has been locked in a solid uptrend since August. Since momentum is a leading indicator of price, that's added assurance that we'll see that test of $83. Until it happens, there isn't a high-probability trade in BHP. One big bet on BHP Billiton comes from Ken Fisher's Fisher Investments, which held 6.1 million shares of the stock as of the most recently reported quarter. Follow @stockpickr
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV