Rio Tinto plc (ADR) (NYSE:RIO) HEFFX Highlights

Rio Tinto plc (ADR) (NYSE:RIO) HEFFX Highlights

Rio Tinto plc (ADR) (NYSE:RIO) HEFFX Highlights

  • Rio Tinto shareholders have given their backing to the sale of the company’s Australian coal assets to China’s state-backed Yancoal for $2.69bn, spurning a bid by rival Glencore.
  • Shareholders in the UK and Australia voted overwhelmingly in favour of the deal, with 97.2 per cent of a little more than 1bn votes cast in agreement.
  • The purchase would provide Australia-based Yancoal, a unit of China’s state-owned Yankuang Group, with a suite of assets that produce high-quality thermal coal, used in electricity generation, from the Hunter Valley, about two-and-a-half hours north of Sydney.

Rio Tinto plc is a mining and metals company. The Company’s business is finding, mining and processing mineral resources. The Company’s segments include Iron Ore, Aluminium, Copper & Diamonds, Energy & Minerals and Other Operations. The Company operates an iron ore business, supplying the global seaborne iron ore trade. Its Iron Ore product operations are located in the Pilbara region of Western Australia. The Aluminium business includes bauxite mines, alumina refineries and aluminum smelters. Its bauxite mines are located in Australia, Brazil and Guinea. The Copper & Diamonds segment has managed operations in Australia, Canada, Mongolia and the United States, and non-managed operations in Chile and Indonesia. The Energy & Minerals segment consists of mining, refining and marketing operations in over 10 countries, across six sectors: borates, coal, iron ore concentrate and pellets, salt, titanium dioxide and uranium.

Overall, the bias in prices is: Upwards.

Short term: Prices are moving.

Intermediate term: Prices are ranging.

The projected upper bound is: 66.50.

The projected lower bound is: 60.89.

The projected closing price is: 63.70.

RIO TINTO FPO closed up 0.330 at 63.600. Volume was 47% below average (neutral) and Bollinger Bands were 1% wider than normal.

Open        High        Low            Close        Volume
63.190     63.910     62.930      63.600     1,370,494

Technical Outlook
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bullish

Moving Averages: 10-period      50-period      200-period
Close:                       60.59             61.12              59.56
Volatility:                31                   29                   34
Volume:                  2,655,278     2,461,407      2,444,524

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.

Summary

RIO TINTO FPO is currently 6.8% above its 200-period moving average and is in an downward trend. Volatility is Our volume indicators reflect volume flowing into and out of RIO.AX at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on RIO.AX and have had this outlook for the last 11 periods.

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 95.3919. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 5 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 61.76. 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 28 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 131.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 6 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 2 period(s) ago.

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John Heffernan

John Heffernan is a Junior Analyst at HEFFX. John is studying Economics and is a contributor on equities at Live Trading News.

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