What happened to the BHP Billiton share price?
At the time of writing, shares of BHP Billiton Ltd [ASX:BHP] are up by 1.10%, to $35.08 per share.
What caused BHP Billiton share price to rise?
BHP Billiton is considered a blue chip company and tends to move with the market. That makes sense. The ASX 200 Index is currently up by 20.4 points to 6,146.6 points:
For the past few weeks, the ASX 200 has been trading around resistance at the 6,200 level. It’s now moving towards support at the 6,100 zone. Will it bounce from there? Who knows. But if the market moves higher, it should spell good news for BHP Billiton. BHP Billiton has seen a strong bounce this month:
The share price has bounced strongly off major support stood around $31. It’s now trading near major resistance at $35 per share. I warned it would likely move to re-test this level last week.
What now for BHP Billiton?
There’s a good chance the share price will tap resistance before making its next move. We really need to see the overall market boom for the share price to breakthrough resistance, however. That said, let’s take a look at the iron ore price ― a large contributor to BHP Billiton’s earnings:
The iron ore price has traded sideways for months, despite being volatile. There’s little indication whether the price will move higher or lower in the future. That said, iron ore is re-testing last month’s high and that has reflected in BHP Billiton’s share price. In that case, given iron ore is a large source of BHP Billiton’s revenue, a stable iron ore price isn’t a bad thing.
The bottom line: BHP Billiton’s future is mainly dependent on the overall market today, rather than the iron ore price. But both look good this week, which have aided BHP Billiton’s recent share price bounce. We will track this story once a week and analyse any future developments.
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