South32 Ltd (ASX:S32) Trading Outlook

South32 Ltd (ASX:S32) Trading Outlook

South32 Ltd (ASX:S32) Headed Over $2

Overall, the bias in prices is: Upwards.

Short term: Prices are moving.

Intermediate term: Prices are trending.

Note: this chart shows extraordinary price action to the upside.

The projected upper bound is: 2.06.

The projected lower bound is: 1.77.

The projected closing price is: 1.96.

Momentum Suggests Further Consolidation

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 60.2150. This is not an overbought or oversold reading. The last signal was a buy 8 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 60.86. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 16 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 106.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 15 period(s) ago.


The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 10 period(s) ago.

SOUTH32 FPO closed down -0.025 at 1.910. Volume was 27% below average (neutral) and Bollinger Bands were 42% narrower than normal.

Open High Low Close Volume___
1.935 1.955 1.895 1.910 14,428,920

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 1.87 1.71 1.41
Volatility: 24 54 62
Volume: 18,834,490 20,728,178 22,371,362

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.


SOUTH32 FPO is currently 35.1% above its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of S32.AX at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on S32.AX and have had this outlook for the last 21 periods.

South32 Limited is an Australia-based metals and mining company. The Company operates through segments, which include Worsley Alumina segment has a bauxite mine and alumina refinery in Western Australia; South Africa Aluminum segment has two aluminum smelters at Richards Bay; Mozal Aluminium segment has Aluminum smelter in Mozambique; Brazil Aluminium segment has Alumina refinery and aluminum smelter in Brazil; South Africa Energy Coal segment has energy coal mines and processing operations in South Africa; Illawarra Metallurgical Coal segment has metallurgical coal mines in southern New South Wales; Australia Manganese segment, a producer of manganese ore in the Northern Territory and manganese alloys in Tasmania; South Africa Manganese segment is a producer of manganese ore and alloy in South Africa; Cerro Matoso segment has laterite ferronickel mining and smelting complex in northern Colombia, and Cannington segment is a silver, lead and zinc mine located in northwest Queensland.

The following two tabs change content below.
Shayne Heffernan Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

You must be logged in to post comments :