BHP Shares Slide 2.99% As Technical Indicators Flash Bearish Signals

BHP Group experienced a 2.99% decline in the most recent session, extending its losing streak to two consecutive days with a cumulative drop of 3.28%. This downward movement reflects emerging technical vulnerabilities, which we now dissect through multiple analytical lenses.
Candlestick Theory
The recent price action shows a clear bearish pattern, with the last two sessions forming consecutive red candles closing near daily lows ($50.37 and $51.92). This confirms sustained selling pressure. Key support emerges near $49.60–$49.80, aligning with March 2025 consolidation zones. Resistance is now established at $51.50–$51.70, the convergence point of the July 10 bullish candle’s midpoint and the breakdown level from July 14. A close below $49.60 would signal vulnerability to deeper retracement.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages reveal deteriorating momentum. The 50-day MA (~$51.30) has crossed below the 100-day MA (~$52.10), forming a "death cross" that typically precedes intermediate-term weakness. Price currently trades below all three MAs—a bearish alignment. The 200-day MA near $48.90 offers potential long-term support, but sustained trading under the 50-day MA suggests short-term bears control momentum.
MACD & KDJ Indicators
MACD shows a bearish histogram expansion below its signal line, confirming accelerating downside momentum. Simultaneously, the KDJ oscillator reflects oversold territory (K: 18, D: 25), yet lacks a bullish crossover, indicating persistent downward pressure. This divergence—oversold readings without reversal signals—warrants caution. Recovery requires MACD convergence and KDJ bullish cross above 20 to alleviate bearish momentum.
Bollinger Bands
Volatility contraction is evident as bandwidth narrowed by 15% over the past week, culminating in a sharp downside breakout below the lower band ($50.80). This expansionary move validates bearish momentum. Prices now trade well below the lower band, suggesting oversold conditions but also indicating that mean reversion toward the 20-day SMA ($51.40) may encounter resistance near the mid-band.
Volume-Price Relationship
The sell-off was validated by rising volume: 3.86M shares traded during the latest drop versus the 30-day average of 2.92M. This distribution pattern diverges from the July 10 rally (5.68M shares), where high volume confirmed bullish conviction. The current volume-backed decline implies institutional participation in the downturn, reinforcing resistance near $51.50.
Relative Strength Index (RSI)
The 14-day RSI reads 36, hovering above oversold territory (<30) but signaling weakening momentum. This reading contrasts with early July’s overbought peak (RSI 73). While not yet oversold, the RSI’s downward slope since July 10 aligns with bearish momentum. A breakdown below 30 could trigger short-term bounce attempts, though sustained recovery requires RSI to reclaim 50.
Fibonacci Retracement
Applying Fib levels to the April 9 low ($40.22) and July 11 high ($52.13), key retracement zones emerge. The 38.2% level at $48.20 and the 50% level at $46.20 define critical support. Recent price rejection at the 23.6% level ($51.10) reinforced this resistance. Confluence exists at $48.20–$48.50, where the 38.2% Fib aligns with the 200-day MA and a volume-infused April swing high, making it a pivotal defense zone.
Confluence & Divergence Observations
Confluence reinforces resistance at $51.50–$51.70 (candlestick breakdown, Bollinger mid-band, and volume profile). Conversely, $48.20–$48.50 offers strong support (50-day/200-day MA cross, 38.2% Fib, and historical consolidation). Notable divergence appears via KDJ’s oversold signal amid MACD’s bearish momentum, suggesting potential short-term bounces remain vulnerable to renewed selling pressure without volume confirmation.
In summary, BHP’s technical structure favors downside continuation toward $48.50 support, though oversold readings warn of consolidation near $49.60. Reversing the bearish trajectory would require a volume-backed close above $51.70 to neutralize immediate downside risks.