The Latest Story for BHP Billiton & the Iron Ore Price

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:

Source: Commsec

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:

Source: Commsec

Major support stands around $31 per share on the chart above. That’s roughly where BHP Billiton is trading today.

Free Report: 10 ASX mining stocks that could make you huge money in the next 12 months and beyond. Get access now.

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.

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:

Leave a Reply

Your email address will not be published. Required fields are marked *

Markets & Money