The BHP stock price has fallen considerably over the past week given the dramatic falls in commodity process this week. BHP closed the week much lower at $28.74 compared to last week's close of $31.72. Given the recent price movements BHP still remains my favourite stock to trade because of its liquidity and volatility.

The BHP stock price is looking weak in the short term. There are no real indications for the short term of any break back to previous support levels above $30. For stock traders, remember that you can trade the stock up and down so you could have taken advantage of the weaker commodity prices by shorting commodity related stocks.

For the longer term, brokers and other commentators have commented that underlying fundamentals are still there. The brokers are bullish on BHP. Just have a look at the graph above. Notice how BHP has been on a strong bull run since late 2003.

On the candlestick front, there are two messages the charts are giving out to anyone who wants to listen. In the daily charts (see inset), there is a clear inverted hammer on Friday’s close. (The upper tail with the small lower real body) The question remains, is this the turning point or can the BHP share price fall lower? Is this the downtrend reversal signal? For punters, you could have placed an order before Friday’s close. For those who want a little re-assurance, you could possibly wait for confirmation in the next few days of the reversal.

The second message reveals itself in the weekly charts. If you know how to read candlesticks you should also know how to add candlesticks together. A simple addition of the candlesticks (shown in inset) would show a long thick red bearish candle. And we all know that one thick ass candle of any colour is a strong indicator of weakness - no matter which market or timescale. Hence I would expect a little weakness in the BHP price for now, but all the while keeping a close eye on any changes in commodity prices.