In the short term there appears to be potential for BHP to make a move up towards about $30.50 and that could then provide an opportunity for covered call writing. This is because if it fails there, we may continue to see it drift sideways and use up some more time or perhaps even make a very quick drop towards support just above $24. The stock is showing some similar characteristics to September 2011 where it fell from nearly $50, down towards $34. The stock managed to bounce around for about 6 months before making a final low. On this weekly chart, we can see that it created divergence with the weekly RSI, and that was therefore a strong buy signal. So while the stock is currently showing divergence on the daily chart, and being oversold on the weekly chart, if we see this divergence occur again on the weekly chart then that would be a very strong buy signal. So traders may want to sell on any rally here but longer term holders could consider holding on, picking up the 4.6% dividend yield, writing calls on any rally to boost that income, with a view to consider adding to positions if we do get a quick dip towards $24.