We expect BHP Billiton ((BHP)) will find strong support around the 29.50-30.00 level and bounce back towards 33.00 over the next 2-3 weeks.<\/p>\n
Our view is based on three indicators which all point to the 29.50-30.00 level as a significant support level. Clearly the three lows around 30.00 should provide a decent technical support. We also expect the break target level around 30.00 which is derived from the break below 35.25 support improves the odds for a bounce.<\/p>\n
In addition BHP appears to have traced out a five wave count lower from 39.50 which indicate the downside move may be due for a corrective rally given the length of wave 5 now approximates the length of wave 1.<\/p>\n
Trading tactics<\/strong><\/p>\n Wait<\/u> for buy signals between 29.25 and 31.00 over the next week. A break above 30.90 should signal a higher low has formed as long as the 29.25 low holds. \nAnother trading idea from<\/strong><\/p>\n Fifth Wave |<\/strong> fwtc.com.au<\/strong><\/a> <\/p>\n FW generates over 150 Trading Alerts on the ASX100 each year. We are a subscription service specialising in short term technical strategies based on 27 years experience<\/strong>.<\/strong><\/p>\n AFSL 319830 |<\/strong> Disclaimer<\/strong><\/a><\/p>\n Reprinted with permission of the publisher.<\/em> Content included in this article is not by association the view of FNArena (see our disclaimer<\/a>).<\/em><\/p>\n Technical limitations <\/strong><\/em><\/p>\n If you are reading this story through a third party distribution channel and you cannot see charts included, we apologise, but technical limitations are to blame.<\/strong><\/em><\/p>\n
\n <\/p>\n![\"\"](\"http:\/\/www.fnarena.com\/ckfinder\/userfiles\/images\/ffbhp4.jpg\")
<\/p>\n