Rio Tinto plc (LON:RIO) HEFFX Highlights

Rio Tinto plc (LON:RIO) HEFFX Highlights

Rio Tinto plc (LON:RIO) HEFFX Highlights

  • When Gervais Jacques was invited to speak to the Greater Vancouver Board of Trade last week about the $6 billion modernization of an aluminum smelter in Kitimat in 2014 and 2015, the context of the discussion was free trade with the U.S.
  • The U.S., after all, is a major customer for B.C. aluminum.
  • But Jacques’ talk ended up sounding more like a promotion for large-scale hydroelectricity for heavy industry and manufacturing – something Jacques called “the Canadian advantage.”
  • It was B.C.’s hydro power potential that drew Alcan to B.C. to build the Kemano hydroelectric dam, completed in 1954, and aluminum smelter. It was at the time the largest private investment made in B.C. With a workforce of 1,000, the smelter is Kitimat’s largest employer.

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: Sideways.

Short term: Prices are stalling.

Intermediate term: Prices are ranging.

The projected upper bound is: 68.44.

The projected lower bound is: 63.29.

The projected closing price is: 65.87.

RIO TINTO FPO closed down -0.160 at 65.850. Volume was 12% below average (neutral) and Bollinger Bands were 29% narrower than normal.

Open         High          Low          Close         Volume
65.860      65.990      65.430     65.850      1,910,615

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

Moving Averages: 10-period       50-period     200-period
Close:                       66.77              65.81              63.09
Volatility:                19                    25                    31
Volume:                   2,481,461      2,016,956      2,294,887

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 4.4% above its 200-period moving average and is in an downward 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 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 3 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 27.2729. This is not an overbought or oversold reading. The last signal was a buy 0 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 45.28. 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 89 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 -94. This is not a topping or bottoming area. The last signal was a buy 2 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 sell 7 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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