Rio Tinto Limited (ASX:RIO) HEFFX Highlights

Rio Tinto Limited (ASX:RIO) HEFFX Highlights

Rio Tinto Limited (ASX:RIO) HEFFX Highlights

  • A man has died at a Rio Tinto iron ore mine in WA’s Pilbara.
  • The man, who police believe was aged in his early 50s was found at the Yandicoogina mine, northwest of Newman, just after midday on Tuesday. Police and Department of Mines safety officers are at the scene.
  • Rio Tinto is currently in a dilemma on who it should sell its Hunter Valley mines to – the Swiss or the Chinese.
  • After a protracted bidding war, Rio Tinto shareholders have finally decided to sell its NSW coal assets to China-backed miner Yancoal.
  • Labour hire company WorkPac has moved to quell a growing furore over accusations superannuation contributions would be cut for 800 contract workers at Rio Tinto’s Pilbara operations.
  • WorkPac is now Rio’s preferred labour supplier across Australia after outbidding Programmed Skilled Workforce and DT Workforce.
  • Employers are required to make minimum superannuation guarantee payments equal to 9.5 per cent of a worker’s ordinary time earnings.
  • WestBusiness reported on Wednesday concerns from workers transitioning to WorkPac that in some circumstances their superannuation could be more than halved.
  • About 800 workers were affected, according to an industry source.

Rio Tinto Limited (Rio Tinto) is a mining company. The Company is focused on finding, mining and processing of mineral resources. Its segments include Iron Ore, Aluminum, Copper & Diamonds, Energy & Minerals, and Other Operations. Its products include aluminum, copper, diamonds, gold, industrial minerals (borates, titanium dioxide and salt), iron ore, thermal and metallurgical coal, and uranium. The Iron Ore product group’s operations are located in the Pilbara region of Western Australia. The Company’s business includes bauxite mines, alumina refineries and a range of aluminum smelters. The Copper & Diamonds product group has managed operations in Australia, Canada, Mongolia and the United States, and non-managed operations in Chile and Indonesia. The Energy & Minerals has operations 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 trending.

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

By the way, prices are vulnerable to a correction towards 62.53.

The projected upper bound is: 68.49.

The projected lower bound is: 62.98.

The projected closing price is: 65.74.

RIO TINTO FPO closed up 0.520 at 65.620. Volume was 35% below average (neutral) and Bollinger Bands were 47% wider than normal.

Open         High          Low           Close        Volume
65.320      65.620      65.010      65.620      1,572,013

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

Moving Averages: 10-period      50-period     200-period
Close:                       64.10             61.69              60.09
Volatility:                24                   28                   34
Volume:                  2,503,559      2,412,476      2,441,135

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 9.2% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of RIO.AX at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on RIO.AX and have had this outlook for the last 4 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.

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 85.2487. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 3 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 66.63. 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 34 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 85. This is not a topping or bottoming area. The last signal was a sell 3 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 8 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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