Recognia says the share price of BHP Billiton, the Anglo-Australian multinational mining, metals and petroleum company, could rise from the 1,373.50 level to between 1,436 and 1,451 over the next two weeks or so.
The LSE-listed share (BLT) has confirmed a Double Bottom chart pattern according to Recognia’s proprietary pattern recognition software. In Recognia’s words: “The price seems to have reached a bottom after failing to break through a support level and ultimately rising higher in a sign of reversal to a new uptrend. The Double Bottom pattern forms during a downtrend as the price reaches two distinct lows at roughly the same price level. Volume reflects a weakening of the downward pressure, tending to diminish as the pattern forms, with some pickup at each low, less on the second low. Finally the price breaks upward above the highest high to confirm the bullish signal.”
The pattern has formed over 15 days, which Recognia says is roughly the period of time in which the target price range may be achieved.