BHP Slides 1.16% As Bearish Technicals Converge Below Key $47.50 Resistance

BHP Group declined 1.16% in the most recent session to close at $46.74, establishing a trading range between $46.425 and $46.93 on subdued volume of 2.4 million shares. This movement occurs within a broader context of technical signals warranting multi-indicator assessment.
Candlestick Theory
Recent price action shows a bearish engulfing pattern formed on June 20th (-3.11% close) following a failed breakout above $47.33, establishing immediate resistance near $47.50. The subsequent doji candle on June 24th reflected indecision, now confirmed by the latest red candle breaching June 23rd's low ($45.74). Key support emerges at the June 23rd swing low ($45.74), with resistance firmly anchored between $47.30-$47.50, a zone rejecting multiple advances since mid-June.
Moving Average Theory
The 50-day moving average (currently near $48.30) crossed below both the 100-day (~$49.10) and 200-day (~$50.80) averages in late May, confirming a bearish hierarchy. Current price trading 3.3% below the 50-day MA reinforces the near-term downtrend. The widening gap between declining short-term averages and the flatter 200-day MA signals entrenched bearish momentum, though oversold conditions may prompt consolidation.
MACD & KDJ Indicators
MACD lines crossed bearishly in mid-June, with histogram bars accelerating negatively as price deteriorated—classic momentum confirmation of the downtrend. Simultaneously, KDJ metrics exhibit oversold readings (K-value below 20), though without bullish divergence. This alignment suggests persistent downward pressure despite short-term oversold signals. A potential bullish reversal would require MACD crossover and K%D% upward convergence near $45.74 support.
Bollinger Bands
Contraction to a 1.3% bandwidth (20-day) on June 24th preceded the sharp breakdown below $46.74. Price now hugs the lower Bollinger band ($46.20), reflecting elevated downside volatility. The failure to reclaim the 20-day moving average ($46.90) after the breach heightens bearish implications, with a Bollinger squeeze resolution favoring continued downside absent bullish catalysts.
Volume-Price Relationship
The June 20th sell-off occurred on annual high volume (5.84M shares), validating breakdown credibility. Conversely, recovery attempts exhibited steadily declining volume, culminating in the most recent session's pullback on below-average turnover—a hallmark of bearish conviction. Distribution patterns near $47.50 resistance indicate institutional selling, necessitating accumulation-level volumes (>4M shares) to stage recovery.
Relative Strength Index (RSI)
The 14-day RSI oscillates at 38, avoiding oversold territory despite price weakness. Bearish divergence appeared in early June when price established higher highs amid declining RSI readings—a precursor to the current breakdown. The indicator’s failure to reach oversold levels during sell-offs reflects persistent negative momentum, though readings near 30 would heighten reversal potential.
Fibonacci Retracement
Using the April-June upswing ($40.22-$51.05), critical retracement levels align with recent price action. The 61.8% retracement ($45.00) coincides with the June low, providing logical support. Current trading below the 50% level ($47.64) signals bearish continuation potential toward $45.00-$45.74 confluence (61.8% Fib + June 23rd low).
Confluence & Divergence
Convergence materializes at $45.70-$46.00, where Bollinger lower band, Fib 61.8% retracement, and major candlestick support offer a technical floor. Conversely, KDJ oversold divergence against MACD acceleration represents tactical reprieve potential. Sustained closes beneath $46.00 would invalidate bullish divergences and trigger algorithmic selling toward the $43.50 volume gap (April 10th close).