BHP Shares Drop 3.91% to 50.65 Amid Strong Selling Pressure

BHP Group concluded the latest trading session with a 3.91% decline, settling at 50.65 after fluctuating between 50.28 and 52.12. The price action reflects persistent selling pressure and establishes 50.28 as immediate support. A comprehensive technical assessment follows.
Candlestick Theory
The recent session formed a decisive bearish candle with a long body, closing near its low of 50.28. This pattern emerged near the 52.12 resistance level, which previously acted as consolidation support in late July. Key support is now observed at 50.28, aligning with the psychological 50.00 threshold. Resistance remains firm at 52.12 (prior swing low), with secondary resistance at 53.15–53.29, where multiple June/July reversals occurred. A sustained break below 50.28 may trigger a downtrend extension toward the 48.34–48.62 zone (June lows).
Moving Average Theory
BHP currently trades below all critical moving averages: the 50-day SMA (approximately 51.80), 100-day SMA (~51.20), and 200-day SMA (~50.10). This configuration signals dominant bearish momentum. Notably, the 50-day SMA crossed below the 100-day SMA two weeks prior, confirming a death cross and reinforcing intermediate-term downside bias. While the price hovers near the 200-day SMA, repeated closes beneath it may catalyze long-term trend deterioration.
MACD & KDJ Indicators
MACD (12,26,9) resides in negative territory, with its signal line maintaining a bearish crossover and histogram expanding downward—consistent with accelerating selling momentum. KDJ (9,3,3) shows %K and %D compressed near 15, reflecting oversold conditions. However, the failure of KDJ to generate bullish divergences during recent price lows suggests limited reversal impetus. Both oscillators align in signaling bearish dominance, though exhaustion risks may emerge if oversold KDJ persists.
Bollinger Bands
Volatility expanded as prices breached the lower Bollinger Band (20-day SMA ~51.50, σ=1.20), closing beneath it at 50.65. This deviation suggests exaggerated downside momentum, often followed by mean-reversion bounces. Bandwidth expansion supports ongoing directional pressure. A reversion toward the 51.00–51.50 midline is conceivable short-term, though sustained sub-50.65 closes would extend bearish volatility.
Volume-Price Relationship
The 3.91% decline occurred on elevated volume of 5.46M shares, exceeding the 30-day average and validating bearish conviction. Distribution patterns emerged in late July as prices retreated from 55.31 on rising volume, confirming institutional selling. Volume divergence occurred on July 22–23: new highs at 55.31 were unsupported by proportional volume, foreshadowing reversal. Current volume-backed breakdown suggests downward momentum may persist.
Relative Strength Index (RSI)
The 14-day RSI reads ~28, breaching oversold territory (<30) for the first time since June. While this hints at exhaustion, RSI frequently lingers in oversold zones during strong downtrends. No bullish divergence is evident relative to the July 22 high (RSI >70), reinforcing the bearish structure. A relief bounce could emerge, but sustained recovery requires RSI reconquering 45 alongside price confirmation.
Fibonacci Retracement
Applying Fibonacci to the June 20 low (46.14) and July 23 high (55.31) places the current price between the 38.2% (50.02) and 50% (50.72) retracement levels. The 50.72 level rejected recovery attempts three times in July, now acting as resistance-turned-support. Confluence exists at 50.02 (Fibonacci 38.2% + 200-day SMA), making it critical downside support. A decisive break below 50.02 projects vulnerability to the 61.8% level at 49.05.
Confluence & Divergence
Critical confluence emerges at 50.02–50.28 (psychological barrier, 200-day SMA, Fibonacci 38.2%, and recent low). Breach here would align MACD, volume, and moving average signals for extended downside toward 48.34–49.05. Divergence appears in KDJ/RSI oversold readings versus bearish moving average and MACD alignment—suggesting potential short-term bounces lack structural reversal credibility until prices reclaim 51.80 (50-day SMA).
Probabilistically, risk skews downward below 50.28, with any rally above 52.12 required to neutralize immediate bearish bias.