We took advantage and banked that special R14.43 special dividend well before our profit target, But hey, a profit is a profit. BHP looks to be setting up for a bounce and I am looking to re-enter the trade.
A nice reversal yesterday has seen the RSI give us some positive divergence. The stock has got quite over-sold in the short term (because of the dividend), but based on today’s price action, I expect that to change quite rapidly.
If we look at the chart set up, BHP does seem to be holding, and in fact, bouncing off that horizontal support. I am looking to get long near there.
Here’s the levels I am looking to trade
Buy (Long) BHP (CFD) 286.00/286.50
Stop loss 278.50
Profit target 303.00