“Our largest sector exposure remains in resources and BHP is, of course, one of our key holdings,” Michael said.

“BHP has been trending higher for the past several years, peaking at about $50 earlier this year.

“The share price cooled off, but it has essentially spent the past several months trading sideways in a range.

“Over the past few months or so, we have observed that this trading range was tightening up, so it was just a matter of time until it broke free of that to resume the uptrend.

“We finally got that break (see circled area in chart), and we expect BHP to retest $50 again before ultimately surpassing it.

“Current levels remain a buying opportunity before the stock moves too far,” Michael said.

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