The Australian-based miner saw its share price hit hard when the ASX 200 [XJO] tanked in February 2020.
The BHP Group Ltd [ASX:BHP] share price fell over 42% from its high in January to the low in March.
Subsequently, the BHP share price has moved back up to $38.35 at time of writing.
What’s happening at BHP?
BHP appears to have navigated the pandemic remarkably well, as reflected in the recent results announcement.
BHP focuses on six areas: petroleum, copper, iron ore, metallurgical coal, energy coal, and nickel.
Compared to the March quarter, the June quarter saw all areas except copper and energy coal produce more.
With a current market cap of around $113 billion and an expectation of strong cash flow outlined in their results, BHP looks to have steadied the ship.
A look at the BHP share price chart
From its high in January, the BHP share price fell to the March low of $24.05. It has clawed back much of this fall, up 59.41% to $38.35 from the low at the time of writing.
The strong results from the company are coupled with a forecast that at the end of the 2020 financial year, BHP will have six major projects under development in petroleum, copper, iron ore, and potash.
With a combined budget of US$11.4 billion over the life of the projects, the company says its iron ore and petroleum developments are on track.
BHP has a P/E ratio of 14.55 against the All Ordinaries’ [XAO] average of 32.57.
Let’s take a look at some important levels on the BHP share price chart:
The BHP share price is now hovering around the resistance level of $38.50.
The move up to this level took place on declining volume, indicating the move may run out of steam.
Should the price manage to push up through this level, then the level of $40.30 may provide future resistance.
However, if the current level of $38.50 proves too tough to crack, and a pullback takes place, then levels of $36 and $34.40 may provide support in the fall.
For Money Morning
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