BHP Group’s stock price on the FTSE 100 surged on Tuesday after the company announced it was exiting the oil and gas business to focus on what it termed the commodities of the future. The firm also announced a dividend payout of $15 billion for the year. With this announcement, the company will also end the dual listing of its shares, which opens its door to quit the FTSE 100.
The announcement, which also featured its best full-year profits in almost 10 years on the back of rising iron ore prices, clears the way for the world’s biggest listed mining company to sell its oil and gas business to Woodside Petroleum Ltd.
BHP Group shares surged 10% after the announcement, helping it to the top of the gainers’ chart on the FTSE 100 index.
BHP Group Share Price Outlook
It is not often we see a setup that features a perfect rectangle pattern. This is what we have on the daily chart of BHP Group’s share price.
The surge came off a bounce on the combined support provided by the 2264.5 support and the lower edge of the ascending channel. The bears fought back the violation to keep the price below the rectangle’s ceiling. Bulls would seek a bounce on 2330.5 to make another push towards the 2401.5 ceiling. A break sends the stock to the 2500 psychological level, with the 1 July 2011 high at 2533.5 and the 1 February 2011 high at 2571.5 serving as the additional upside targets.
On the other hand, a decline below 2264.5 breaks down the channel and brings 2198.5 into the picture, with 2127.0 (6/19 July lows) and 2061.5 serving as additional downside targets. Only a breakdown of the rectangle’s floor at 1995.5 invalidates the expectation of a bullish pattern continuation.
BHP Group Share Price: Daily Chart
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