Rio Tinto Limited (ASX:RIO) HEFFX Highlights

Rio Tinto Limited (ASX:RIO) HEFFX Highlights

Rio Tinto Limited (ASX:RIO) HEFFX Highlights

  • Metal prices are likely to remain volatile for the rest of year, the boss of mining group Rio Tinto has warned, while promising investors the company can keep delivering healthy returns.
  • The FTSE 100 miner has benefitted from a recovery in the price of iron ore, the steelmaking ingredient that makes up the bulk of its earnings and which it mines in vast quantities in Western Australia, for sale largely to China.
  • The growing discount for the lower-grade ores produced by the likes of Andrew Forrest’s Fortescue Metals could become a permanent feature of the iron ore market, said Rio Tinto chief executive Jean-Sebastien Jacques.
  • Speaking to The Australian in the wake of Rio Tinto’s first-half profit result, Mr Jacques said he was increasingly confident the widening gap between higher- grade and lower-grade ores was here to stay.

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 stalling.

Intermediate term: Prices are trending.

The projected upper bound is: 66.86.

The projected lower bound is: 61.56.

The projected closing price is: 64.21.

RIO TINTO FPO closed down -1.640 at 64.200. Volume was 2% above average (neutral) and Bollinger Bands were 35% narrower than normal.

Open         High          Low          Close         Volume
64.500      64.870      64.110      64.200      2,375,026

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

Moving Averages: 10-period      50-period       200-period
Close:                       64.44             63.07              61.21
Volatility:                31                    27                    34
Volume:                  2,129,542      2,250,040      2,411,996

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 gapped down today (bearish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
RIO TINTO FPO is currently 4.9% 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 21 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 51.4184. This is not an overbought or oversold reading. The last signal was a buy 6 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 50.30. 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 51 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 -16. This is not a topping or bottoming area. The last signal was a sell 1 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.

The following two tabs change content below.

John Heffernan

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

Latest posts by John Heffernan (see all)

You must be logged in to post comments :  
CONNECT WITH