“The share price of BHP has struggled over the past year along with the decline in iron ore prices,” Michael said.

“Their recent first half results were generally in line or ahead of market expectations and analysts are now recognising that the stock represents good value down here.

“The chart is also indicating that we have possibly seen the low.

“After the very strong bounce in September, BHP then eased back, all the way until it retested those September lows in January.

“Since early January, it has gone to make a higher high and a higher low.

“It has also broken the downtrend that started in October.

“This is therefore a buying opportunity.

“BHP should go on to recover from here and we expect a retest of $46 before we need to reassess,” Michael said.

BHP

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