The Big Boys, page-959

Yes, BHP looks potentially bullish above 26.70 I reckon (and I have liked commodities generally, for quite a while now).
There is a pretty impressive period of accumulation in the background, so there should be some groups in there driving the share price, and defending it when new supply is drawn out. So that always makes holding for an extended period more comfortable.
The more recent pullback appears to be a consolidation of the gains after the initial breakout above the accumulation zone. With some 'real buying' coming in at the end of the consolidation process during June this year (narrow spread downbar on high volume, which closed in the middle), and the response in July was to accelerate away on reduced volume and close well above Junes high, which was a really nice confirmation of the buying support seen in June.
The only catch is 'how much stale supply is left behind from when price brokedown during 2014 & 2015', above the current price.
As it will be mostly this stale supply 'getting out at breakeven' which will cause resistance as price attempts to rise (along with some profit taking, and any new short positions that are opened).
But just how much of that stale supply remains, and how much has been already sold (for a loss) is the big question.
I would imagine some will remain for sure, but a lot will have been sold when the pain became too great I reckon.
Possibly the higher price goes, the less stale supply it will encounter.

It is easiest to see all this on the monthly chart (below), although some of the levels as price brokedown are not quite so clear (things were getting a bit messy at the time, and can be seen more clearly on the weekly chart).
But certainly since the period of accumulation (marked), the price action and levels are much more consistent and make good sense, which suggests price is in stronger hands.


cheers