What Happened
The ASX 200 slipped 0.6% to close at 7,721, weighed down by broad selling in materials and financials. BHP fell 1.1% to $43.80, while the big four banks shed between 0.4% and 0.9%. Overnight, the S&P 500 declined 0.5% to 5,218 and the Nasdaq dropped 0.7% to 16,290 as investors digested mixed economic data out of the US.
Key Levels
- Support 1: $43.50 โ a level BHP has bounced from twice in the past three weeks
- Support 2: $42.10 โ the April swing low and a key longer-term floor
- Resistance 1: $45.20 โ where sellers stepped in during last week’s brief rally
- Resistance 2: $46.80 โ the 52-week high and a major distribution zone
Technical Picture
BHP is trading below its 50-day moving average (currently at $44.60), which is a bearish sign in the short term. The RSI sits at 42, approaching oversold territory but not yet signalling a reversal. The broader downtrend from the February peak remains intact unless BHP can reclaim $45.20.
What Traders Are Watching
The $43.50 support level is the line in the sand for BHP bulls. A daily close below this price could open the door to a test of $42.10. On the upside, any bounce needs to clear $45.20 convincingly before trend traders will take notice. For the ASX 200, a break below 7,680 would likely trigger further selling toward 7,600.
Bias
Bearish. BHP remains below its 50-day moving average with no clear catalyst to reverse the current downtrend. Traders should watch the $43.50 support closely โ a break lower would confirm continued weakness.