BHP Billiton Was below Its 200-Day Moving Average in 2015


Jan. 5 2016, Updated 10:06 a.m. ET

BHB Billiton fell 41.4% in 2015

BHP Billiton (BHP), the Anglo-Australian mining corporation, has fallen more than 41.4% since the beginning of 2015. The bearishness in the entire base metals sector pushed BHP prices down to multiyear lows.

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BHP maintains strong bearish sentiment

As you can see in the above graph, the price of BHP Billiton was below the 200-day moving average for all of 2015. This is a bearish signal. Except for the period from mid-April to the beginning of July, the higher moving averages were above the lower moving averages. The 200-day, 100-day, and 50-day moving averages were all trending downward. The situation is very bearish if the higher moving averages are above the lower moving averages and they’re all aligned downward.

BHP fell 47.2% from its peak in 2015

The highest day’s close for BHP Billiton in 2015 was $49.28 on February 25. Since that peak, BHP has fallen 47.2%. The lowest day’s close for BHP Billiton was $23.62. BHP is currently trading at 10% above that. The prominent price levels in 2015 were $49, $41, and $35. They’re expected to act as important support and resistance levels in 2016. As you can see in the graph, BHP Billiton shares a strong correlation with copper prices. Since the beginning of 2015, copper fell 25%. BHP fell 41%.

Other base metal miners also lost a significant portion of their values in 2015. Vale SA (VALE), Glencore (GLNCY), Freeport-McMoRan (FCX), and Rio Tinto (RIO) fell 60%, 72%, 71%, and 37%, respectively. Base metal ETFs were also on a downtrend for most of 2015. The PowerShares DB Base Metals ETF (DBB) fell 25% in 2015.


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