Gann - BHP

Ok so for those of you that follow this blog i thought i would share a bit of gann stuff in regards to time and price on BHP.

Firstly this does not really mean that a turn must happen but it certainly does give weight to anyone looking to get a short position.

How i would trade this tomorrow (Tuesday) is that i would apply openers rule for my position 1. So this means i will take 1/3 or 1/2 of a full position when price falls below the opening price. Should it open and go flying up to around 41.60 area i will take some of a position and just give it a wide stop loss as this position wont be huge. Then i would add to this position on the first confirmed lower swing top. After that stops are moved down to the highs and i will look for $39 or around here as my target....

This first chart i have is a repeating time range chart. This shows the move down from april highs to the lows in may as a time and how often it has repeated and called turns.



The second his the Square root turns. This is the high or low price of a point on the chart and finding the square root of this and then turning it into calendar days and projecting forward to find a turn date on the stock.



The third chart is showing the significant number of time and price turns landing on and around the 11/12th of october. Mostly trading days but some significant calendar days from prior highs and lows.



This last chart shows the indicators clearly in the over bought area of the chart as well as the Square of 9 resistance from the April tops. This is resistance at 41.69. This level 41.60 is also significant for BHP as it is a multiple of the all time lows and has proven to be resistance previously.



The last chart i am posting is the monthly range of BHP which is around $4. We can see that price is currently at the 50% level of this a very strong failure point and another factor for us looking for a turn.




That is my analysis on BHP. I wouldn't normally share that but thought i would try rewarding those who actually read this blog regularly and provide some out side of the box analysis on a major stock that is regularly traded.

Should we not get a nice openers rule or a good entry we might not even take a position but it certainly does help the argument that the market that we could have a slight correction this week with so many cycles lining up.

Hope that was enlightening

Regards,

Scott