British-Australian mining giant BHP added to yesterday’s gains to register a rise of 2.8% in the early hours of trading on Friday. The company was yesterday’s biggest FTSE 100 gainer, with a 3.7% rise in its share price as investors backed its climate change strategy.
Investors in the London-based BHP Group voted in favour of the mining giant’s climate change strategy, which piqued the curiosity of certain investors in the stock. BHP shares are still down 29% from their 52-week high of $54.55 despite this.
BHP said at its annual general meeting yesterday that it had done its own modelling for a world in line with the Paris Agreement in 2020. According to the findings, such an atmosphere would benefit shareholders while also helping the corporation play a part in the global transition to clean energy. As a result of this, BHP reaffirmed the importance of its asset composition in this trend.
Corporate development programs and policies are under increasing pressure to incorporate environmental, sustainability, and governance (ESG) considerations. As a result, ESG investors may be treating BHP share price with a higher degree of seriousness today as an indicator of things to come in the long-term
BHP has established a long-term goal of reducing emissions by 30% by 2030 and to have net zero emissions by 2050. An element of executive remuneration is linked to climate-specific targets in order to motivate BHP’s management to achieve its climate goals. Investors will be expecting that BHP’s share price rises more than the previous year as a result of these targets.
BHP is on an uptrend and has formed an ascending triangle, which makes a strong case for bullishness in the near term. The market momentum is strong and the Relative Strength Index (RSI) has risen from 30 to 48 in a span of 7 days.
With the RSI at 48, the momentum may only be strong enough to support marginal gains. This could see the stock price rise to find resistance at 39.10. Similarly, any downturn is likely to be marginal, and this could see support established at 38.81. If the price breaches that level, then the second support is likely to be at 37.50 as shown on the lower base of the triangle.