The BHP Group Ltd (ASX: BHP) share price is pushing higher again on Tuesday, up 0.86% to $47.99 in afternoon trade.
At one point today, the stock climbed to $48.25, putting it within touching distance of its 52-week high of $48.49, which was reached on 7 January. Over the past year, BHP shares are now up almost 20%, comfortably beating the S&P/ASX 200 Index (ASX: XJO), up 7%.
With the share price sitting just below recent highs, is BHP setting up for another leg higher?
Rising commodity prices are lifting sentiment
The recent strength in BHP shares is closely linked to improving commodity prices.
Iron ore, BHP’s largest earnings driver, is currently trading around US$108 per tonne, up roughly 8% over the past 12 months, according to Trading Economics. Prices have rebounded from mid-2025 lows as Chinese steel demand stabilises and supply growth remains controlled.
Copper prices have also stayed firm, supported by long-term electrification trends and tight global supply. Together, these trends are supporting earnings expectations and improving confidence across the sector.
BHP nears a key technical level
Looking at the chart, BHP is now trading at an important level.
The relative strength index (RSI) is sitting in the low-to-mid 60s, suggesting solid momentum without the shares looking overbought. That supports the idea that the rally may still have room to run.
The main resistance level sits around $48.50, aligned with the recent 52-week high. A clear break above this level could attract further buying and put the low $50’s back on the radar.
On the downside, support remains near $45, an area that has held during recent pullbacks.
BHP’s beta of roughly 0.7 also means it tends to move less than the wider market, which can appeal to investors seeking steadier exposure to the resources sector.
Dividends still matter to investors
The stock is offering a dividend yield of around 3.5%, with franking credits. While payouts will always depend on commodity prices, BHP’s strong balance sheet provides it with the flexibility to continue rewarding shareholders.
What investors should watch next
With BHP trading just below its 52-week high, the next few sessions could be important. A breakout above resistance may confirm the uptrend, while a pause or pullback would not be unusual after a strong run.
Investors will also be watching the company’s operational review on 20 January, followed by its half-year results on 17 February. Any updates on production, costs, or guidance at those events could act as a catalyst for the next move in the BHP share price.
The post BHP shares hover near 52-week high as momentum builds. Is a breakout coming? appeared first on The Motley Fool Australia.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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