16/02/05 BHP Billiton (Code: BLT) - Billiton Rockets

16/02/05 BHP Billiton (Code: BLT) - Billiton Rockets

BHP Billiton (Code: BLT) - Billiton Rockets



BHP Billiton is the Footsie's leading stock this morning up 4.7%. The chart
shows how the shares have really run this year to make more new all time highs.

With a run like this what stoploss should you use? This will depend on your
time horizon. Short term traders may use minute or hourly data and get even
tighter stoplosses. Looking at the daily data and curve fitting the chart
with optimised stoplosses, there are three levels you could use.

The 18% Stoploss has worked well since 2003 and is the level you would
have needed to use to stay in this run. The 2004 low would have taken you
out on any lower stoploss level. Running from this low and we get 11% as our
level which kept you in the shares through the wobbles of autumn 2004.
The latest run is showing retracements in price no greater than 5%.