BHP Billiton Share Price Up as Iron Ore Re-Tests Last Month’s High

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:

BHP Billiton share price

Source: CommSec

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:

BHP Billiton share price

Source: CommSec

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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:

BHP Billiton

Source: tradingview.com

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.

Regards,

Jason Stevenson,
Resources Analyst, Markets & Money

PS: Interested in mining stocks? My free new investor report, ‘The Top 10 Mining Stocks for 2018’, does exactly what it says in the name. I look at 10 companies that I believe could potentially make you huge money this year, and beyond. To download that report free, go here.


Jason Stevenson is Markets & Money’s resource analyst. He shares over a decade’s worth of investing and trading experience across resource stocks and commodity futures and options. He originally studied accounting and finance at Curtin University, where he was awarded a first-class honours degree. His professional background stems across high-net-worth, top tier accounting (corporate finance, tax and auditing), and sell-side equities research. Before joining the team at Markets and Money, Jason worked at boutique firms which advised fund managers and high-net-worth clients on where to invest. Whether it’s gold, crude oil, copper or an obscure metal like vanadium, you can rely on an in-depth analysis in Markets and Money. Jason also brings you extensive macro, political and geopolitical analysis from around the world. He leaves no stone unturned when it comes to telling the truth. Jason is also the lead analyst of Gold Stock Trader, a premium service for investors serious about precious metal stocks. Websites and financial e-letters Jason writes for:


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