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World’s Largest Commodity Company and the Next Leg of the Super Cycle?

Posted by nexvucapital on February 19, 2013

We prefer long charts…so we present the 25 year monthly chart for BHP – the world’s largest commodity company. This chart reflects where we sit in the commodity super cycle. A few points to consider:

  • no one cared about commodities until the early part of the last decade (basing pattern from 1988 to 2003)
  • the first phase in the Super Cycle traced a 5 wave pattern (1-5)
  • this was followed by a normal ABC correction (ABC)
  • note the C corrective wave halted at the same point as the #4 corrective wave
  • the price appears to be initiating the second phase of the Super Cycle (a NEW 5 wave pattern currently in wave #1)
  • the current upwave #1 is at the resistance point of original upwave #3 and corrective upwave B at $80.00 (this is a key breakout point)
  • NOTICE the MACD is currently crossing over as it last did at the bottom of the 2008-2009 correction

BHP Monthly 25 Years - February 19 2013 copy

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