$BHP Group Ltd (BHP.AU)$ stock rose 2.24% on Monday, with trading volume expanding to A$285.5 million. BHP has risen 13.09% in the past week, with a cumulative loss of 4.06% year-to-date.

BHP's technical analysis chart:

Technical Analysis:

Support: A$38.77

Resistance: A$45.03

Price range A$38.77 to A$45.03: The trading range indicates a heavy concentration of buy orders, with the stock price on an upward trend and strong upward momentum. However, there is a risk of profit-taking as some gains have been accumulated. BHP's stock price had been fluctuating within a range of A$38.77 to A$45.03 since November 2022. The stock had found support near the lower boundary of the box at A$38.77 and has started to rebound. Currently, the stock is near the upper resistance level of the box at A$45.03. Going forward, it is necessary to observe whether the resistance near A$45.03 can be effectively broken through.

Market News :

BHP released its financial results for the year ending June 30, 2024, on August 27, 2024. The company reported revenues of US$55.66 billion for the year, up from US$53.82 billion in the previous year. However, statutory net profit declined by 39% to US$7.9 billion, primarily due to a US$2.7 billion impairment of its Western Australian nickel operations and a US$3.8 billion provision related to the Samarco dam disaster in Brazil. Despite these setbacks, BHP's underlying profit, excluding significant items, increased by 2% to US$13.7 billion, which exceeded analyst expectations of US$13.26 billion. Revenue also saw a 3% increase to US$55.7 billion. Reflecting the financial results, the company decreased its final dividend to US$0.74 per share, resulting in a full-year dividend of US$1.46 per share.

China's economic stimulus measures are anticipated to foster a recovery in the nation's economy, stimulating demand for commodities such as iron ore and copper. This is likely to lead to an increase in the prices of bulk commodities.

Overall Analysis:

Fundamentally, focus on the company's performance and operational status. Technically, pay attention to whether the support levels hold and if the resistance levels can be effectively breached.

In this scenario, investors should adopt a cautious strategy, setting stop-loss points to manage risk and maintaining ongoing vigilance regarding company developments and market conditions.

Source: BHP, Bloomberg