I would look to tighten stops to just below yesterday’s low of 5365, but a lot will depend on how BHP trades today. BHP has a huge weighting on the market, thus price action is important.
In terms of BHP’s earnings, Evan Lucas will cover it in much more depth using our Equity Matrix in the shares section, but on first blush BHP has released a good set of numbers helped largely by better costs in its copper division. In terms of headline numbers NPAT (underlying) was 10% above expectations, while revenue at $33.9 billion was right in-line with forecasts.
Is there really anything in the report to push the stock through the top-end of its range? I am not so sure, although Evan feels the result could push it through $38.20 to $38.30 resistance.
Overall there are signs the Australia 200 could roll over, especially on the hourly chart. So some could look to lock in a 0.5% gain, however with US markets re-opening after being closed yesterday and looking to print new all-time highs (in the S&P 500) a good night tonight in the US and the Australia 200 cash will naturally follow.