Rio Tinto Stock Overview – Death and Fines

Rio Tinto Stock Overview – Death and Fines

It has been just over a year since Jean-Sébastien Jacques took over the reins at Rio Tinto. The 45-year-old France-born executive knows there is much more still to do to restore investor confidence in the sector.

Years of profligate spending and dealmaking left the industry saddled with huge debts and a reputation as a poor steward of shareholder capital.

But Mr Jacques has spent the past year cementing its relationship with investors with a focus on value rather than chasing expensive growth through piling on production.

Under his leadership the Anglo-Australian miner has continued to shrink its debts, declared $3.6bn of cash returns to investors and sold the bulk of its coal business. Its share price has risen almost 50 per cent during the past 12 months and, for the first time in the company’s history, there were no work-related fatalities on its sites during the year.

A B.C. Supreme Court Justice has waived a $125,000 fine a lower-court judge levied against Rio Tinto Alcan for unlawfully lowering the Kemano River and destroying salmon in the process. The fine was to go towards fisheries conservation efforts and was in addition to $75,000 worth of penalties after Rio Tinto was found guilty of two counts under the Fisheries Act.

A man has also died at a Rio Tinto iron ore mine in WA’s Pilbara. Police believe the man was aged in his early 50s and have launched an investigation into his death.

The opening price for Rio Tinto plc (NYSE:RIO) was $44.59 and the volume amounted to 2.44 million shares which compares with the average volume of 3.13 million shares. The company stock experienced a -0.29% move to arrive at $44.56.

Overall, the bias in prices is: Sideways.

Short term: Prices are stalling.

Intermediate term: Prices are ranging.

The projected upper bound is: 100.56.

The projected lower bound is: 100.56.

The projected closing price is: 100.56.

Candlesticks

WARNING: These prices only contain closing prices. Thus, the candlestick analysis in this expert will be invalid (including the alerts, symbols, and this commentary). To detach this expert, right-click on the RIO TIN DIV chart, choose Expert Advisor, and then choose Detach.

During the past 10 bars, there have been 0 white candles and 0 black candles. During the past 50 bars, there have been 0 white candles and 0 black candles.

A gravestone doji occurred. This often signifies a top (the longer the upper shadow, the more bearish the signal).

Momentum Indicators

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 0.0000. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 183 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 0.53. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 98 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 0. This is not a topping or bottoming area. The last signal was a buy 94 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 86 period(s) ago.

Rex Takasugi – TD Profile

RIO TIN DIV closed unchanged at 100.560. Volume was -0% below average (neutral) and Bollinger Bands were 100% narrower than normal.

Open       High        Low         Close       Volume
100.560  100.560  100.560  100.560  0

Technical Outlook
Short Term:               Oversold
Intermediate Term: ?
Long Term:                Bearish

Moving Averages: 10-period  50-period  200-period
Close:                       100.56       100.56        102.63
Volatility:                0                  0                 52
Volume:                   0                  0                0

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 TIN DIV is currently 2.0% below its 200-period moving average and is in an downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect very strong flows of volume into .RIODIV (bullish). Our trend forecasting oscillators are currently bearish on .RIODIV and have had this outlook for the last 69 periods. Our momentum oscillator is currently indicating that .RIODIV is currently in an oversold condition.

Rio Tinto is an Australian-British multinational and one of the world’s largest metals and mining corporations.

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Ivy Heffernan

Ivy Heffernan, student of Economics at Buckingham University. Junior Analyst at HeffX and experienced marketing director.

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