BHP share price rose by more than 2% in Australia and is among the top performers in the FTSE 100 today. The shares of the biggest FTSE 100 constituent has risen to 2,280p, the highest level since 2011.
BHP news: Commodity companies have done relatively well in the past few months helped by the surging prices. In its earnings report today, BHP said that its profit for the first half increased by 16% to $6 billion. It had made more than $5.2 billion in the same period a year ago.
This performance was mostly because of iron ore, whose price has surged because of demand from China. The price has risen by more than 30% in the past few months. Other commodities it mines like coal, copper, and potash have also seen higher prices recently.
In total, BHP attributed profit declined to $3.9 billion because of a one-off charge of $2.2 billion.
BHP Share Price Forecast
In my past prediction of the BHP share price, I wrote that the stock would rise to 2,228p in the near term. That happened yesterday. Today, the shares have continued to rise and are still above the ascending trendline and the short and medium-term moving averages.
Therefore, in the near term, the shares could continue rising as bulls target the next resistance level at 2,400p. The upcoming stimulus deal in the United States will be an additional catalyst for the shares. However, as I warned before, BHP operates in a highly cyclical industry meaning that the shares will pull-back in due time.
BHP shares chart