Hawkish Fed Policy is Hitting BHP Group Hard, What to Do Next?

BHP Group Limited is a multinational mining company. It was founded on 13th August 1885 as a Broken Hill Proprietary Company and has its headquarters in Melbourne, Victoria, Australia. The company serves globally and has more than 80K employees.

As the U.S. Federal Reserve is signaling another rate hike by year-end, the investors’ sentiment is hit resulting in profit booking of multiple Energy and Mineral stocks including BHP Share.

The market cap with the decline in share price has declined to $145.857 Billion and the share has an EPS of 5.09 USD. The current price-to-earnings ratio of the stock is 11.31. It shows that the investors are ready to pay higher prices for the stock.

The company has 2.534 Billion shares floating in the market and available for trading, following a beta of 1.05. It makes the stock move equal to or slightly higher than the overall market as a whole.

BHP Group Stock Performance Analysis

The BHP Group made a net income of 24% in 2022, which is much lesser as compared to the year 2021. The company made a revenue of $53.82 Billion in the year 2022. The debt of the company has advanced from $16.43 Billion to $22.34 Billion in 2022. The advance in debt for the company is not considered a good sign for its future performance. The current gross profit for the company is $27.66 Billion, following 51% of the total revenue of the company.

Technical Overview of BHP Stock

The technicals of the share are negative, following multiple moving averages and oscillators on the daily timeframe while due to reliable fundamentals of the company, the experts are bullish on the stock and recommending a buy.

BHP Share Technical Analysis

BHP stock price is trading in a tight range, making lower highs and higher lows leading to the formation of a symmetric triangle. The BHP share price is currently trading at the same level. It indicates uncertainty in price unless it breaks below or above the triangle pattern.

The EMA’s for the BHP share are trading in a golden cross. The price of the share is currently trading between the 50-day and the 200-day EMAs and is on the verge of breaking down. If the share price breaks below the 200-day EMA, it will result in a bearish sentiment toward the stock.

The RSI for the BHP stock is mildly negative as it is trading below the 50 level. It has also declined below the 14-day SMA line, which further indicates weakness in share price.

Conclusion

The share price of the BHP group is uncertain, trading inside a triangle pattern. The EMA and RSI are being range bound, acting uncertain while the fundamentals of the company are showing a decline as compared to the previous year’s data.

Therefore, if the price breaks below the symmetrical triangle, it can lead to much lower levels.

Technical Levels

Support levels for the BHP share are – $42.00 and $47.00
Resistance levels for the BHP share are – $64.00 and $71.50

Disclaimer

The information provided in this article, including the views and opinions expressed by the author or any individuals mentioned, is intended for informational purposes only. It is important to note that the article does not provide financial or investment advice. Investing or trading in cryptocurrency assets carries inherent risks and can result in financial loss.