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Analysis

The technical views on BHP, Core Lithium and Whitehaven Coal

BHP

Australian stock markets may face headwinds in the wake of an accelerating pace of rate hikes in the major developed countries’ central banks despite a more conservative stance of the Reserve Bank of Australia. The benchmark index, ASX 200, dipped 0.64%, to 7480 at 2:30 pm local time, with potential retreating signals seen in some major stocks from a technical respective.

Core Lithium Ltd – Daily (a potential bearish break-out on the ascending trendline)

Key technical elements:

  • A bearish engulfing has been formed on April 5, indicating the uptrend may have topped, with the pivotal support at the trendline, overlapping with the 10-day moving average at A$1.30 (Fib. 38.2%).
  • Stochastic has formed a dead-cross, crossing down from the overbought territory, signaling the bear starts mounting.
  • MACD also indicates the upside momentum is fading, with a potential dead-cross forming ahead.

Key price levels:

Supports: A$1.3, A$1.19

Resistances: A$1.44

BHP Group Ltd (ASX)-Daily (a potential continuation of pullbacks from the top of the descending channel)

Key technical elements:

  • The three red candles (from March 30 to April 4) at the trend line resistance indicate a near-term top may have been formed.
  • Stochastic points down from the overbought territory, signal the upside momentum is fading.
  • MACD also sees pricing weakness may near with the moving averages flatting.

Key price levels:

Supports: A$50.42, A$49, A$47.24, A$45.02

Resistances: A$53.01

Whitehaven Coal-Daily (the uptrend is intact with a continuous upside momentum)

Key technical elements:

  • The uptrend in MACD is intact with support at the 20-day moving average at A$4.15.
  • Both Stochastic and RSI are pointing up, indicating the upside momentum builds up
  • A potential bullish break-out at the near-term high at A$4.50.

Key price levels:

Supports: A$4.15, A$3.81

Resistances: A$4.50, A$4.75


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