BHP Key 200 WMA| Oversold RSI| Volume Climax

Evening Traders,

Today’s analysis will focus on BHP, sellers are in complete control after breaking key technical levels. It has been rejected at a technical point that will dictate the overall trend in the coming weeks and months.

Points to consider,
- Strong bear break
- 200 WMA – Current resistance
- Local support respected - .618 Fibonacci in confluence
- RSI coming of oversold
- Stochastics in lower regions
- Volume climax evident

The trend is bearish for BHP, breaking key technical levels in the recent sell off. The 200 WMA is a vital level for the overall trend, current acting as resistance.

Local support is in confluence with the .618 Fibonacci, breaking this level will target the 2.618 Fibonacci Extension.

The RSI is currently extremely oversold; this is considered to be an oversold bounce if it recovers to neutral territory. Stochastics is in lower regions, can stay trading here for an extended period of time, however lots of stored momentum to the upside.

Volume climax is evident; this suggests that the temporary bottom may be in. If BHP puts in a lower high, it will increase the chances taking local support out.

Overall, in my opinion, BHP has a clear level, 200 WMA, a break will increase the bullish bias as the .618 will hold true. A rejection will increase the bearish outlook, thus the first target being the 2.618 Fibonacci Extension.
What are your thoughts?

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And remember,

“Trading mastery is a state of complete acceptance of probability, not a state of fight it.”
― Yvan Byeajee