4 Trade Ideas for BHP Group: Bonus Idea

Here is your Bonus Idea with links to the full Top Ten:

BHP Group, $BHP, ran from a low in October to a top in early March. It pulled back from there, retracing 38.2% of the rise, and found support at the 100 day SMA. It reversed from there and moved higher. It comes into the new week consolidating under resistance. The Bollinger Bands® are shifted and opening higher with the RSI on the edge of a move into the bullish zone.

The MACD is rising and positive. There is resistance at 75 and 76.50 then 80 and 81. Support lower comes at 71.75 and 69.50 then 67.35. Short interest is low at 1%. The stock pays a dividend with an annual yield of 5.92% and has been trading ex-dividend since March 4th. The company is expected to report earnings next in August.

The May options chain shows open interest big from 75 down to 55, biggest at 67.50 on the put side. On the call side it is focused from 72.50 to 85 and bigger, biggest at 80. In the June chain there is minimal open interest on the put side, but the call side has big size at 80 and 90. In the August options open interest is spread from 82.50 down to 47.50 on the put side. On the call side it is spread from 65 to 100 and bigger.

BHP Group, Ticker: $BHP

Trade Idea 1: Buy the stock on a move over 75 with a stop at 72.

Trade Idea 2: Buy the stock on a move over 75 and add a May 72.50 Put ($1.20) while selling an August 85 Call ($1.20).

Trade Idea 3: Buy the May/August 80 Call Calendar ($2.40) and sell the June 67.50 Put ($0.75).

Trade Idea 4: Buy the August 67.50/75/80 Call Spread Risk Reversal (65 cents).

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with one week left in April sees the weather is turning warmer and equity markets getting a spring in their step.

Elsewhere look for Gold to continue its short term move higher while Crude Oil consolidates in a tight range. The US Dollar Index continues to move to the downside while US Treasuries bounce in their downtrend in their uptrend. The Shanghai Composite looks to continue broad consolidation while Emerging Markets consolidate in the uptrend.

The Volatility Index looks to remain very low making the path easier for equity markets to the upside. Their charts also look strong, especially on the longer timeframe, with the SPY leading the charge and the QQQ moving to join it while the IWM consolidates. On the shorter timeframe the SPY is also the strongest with the QQQ starting to move higher and the IWM on the edge of a breakout. If that happens it might be time for the IWM to take the lead again. Use this information as you prepare for the coming week and trad’em well.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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