At the time of writing, shares of BHP Billiton Ltd [ASX:BHP] are up by 1.06%, to $31.43 per share.
Why did BHP Billiton Ltd shares do this?
BHP Billiton is considered a blue-chip company and tends to move with the market. That said, the ASX 200 Index is currently down by 39.8 points to 6,136.1 points:
There’s little explanation as to why BHP Billiton is up today, with the market down. However, considering the recent slump in the Aussie market, BHP Billiton may be seeing a reaction bounce today:
Major support stands around $31 per share on the chart above. That’s roughly where BHP Billiton is trading today.
What now for BHP Billiton Ltd?
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 nearly two years, despite being volatile. There’s little indication whether the price will move higher or lower in the future. That said, 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 looks mostly exposed to market risks today, rather than the iron ore price. We will track this story once a week and analyse future developments. That said, BHP Billiton’s share price is currently trading around a major support region and could bounce from here, which is happening today. There’s little indication that it will drop sharply in the near-term future.
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