I entered bhp today at 35.77. A few reasons.
1.It has been trading in a 35-39 band for the past twelve months so hopefully it will do this again one more time.
2. The fall in iron ore price has wiped out smaller miners and may be beneficial to bhp which has more diversified assets and higher grade iron.
3. The overall market is down today.
4. The technical indicators MACD and bollinger bands look suitable.
5. Various analysts - motley fool and intelligent investor - have a buy recommendation on bhp
6. Dividend is close to 4%
If it can go up one to two dollars in the next two months I will be pleased. I am expecting a little bit more short term price drop perhaps and then rise hopefully.
Are my reasons sound?
China,imho,,just my observations most hower around the average and from experience but not trading in BHP,THE 50/50 odds on a higher deviation decline always goes faster as it moves away from the average..