“BHP shares hit $50 at the start of the year, but they have fallen since then,” Michael said.
“This has tracked the iron ore price which has recently turned lower.
“However, we are starting to see some good buying support emerge now, which may coincide with a levelling out in the price of iron ore.
“The price action in BHP has been very interesting in the last few weeks and it has provided a buy signal for those looking to enter down at these levels.
“After falling away in mid-April, it then opened lower again on 26 April (circled in chart below) but under the March low (blue line).
“However, by the end of the day it was trading much higher and closed on the highs.
“The following few days after that has seen it hold up well. Volumes were also above average on 26 April.
“This price action is very bullish and it implies that large funds are happy to step up and buy BHP anywhere near $43.
“This means that a good low is in place.
“Current levels are therefore a buy as we expect the share price to meander back up towards $50,” Michael said.
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