Rio Tinto better than expected results helps pushing prices higher

Quarry and various stones
Rio Tinto, a mining company, reported 1H results: "3.3 billion dollars net earnings, 20% lower than 2019 first half, mainly reflected a 0.2 billion dollars higher impairment charge, 0.3 billion dollars increase in exchange rate losses and 0.1 billion dollars net additional closure costs for non-operating and fully impaired assets. (...) 9.6 billion dollars underlying EBITDA was 6% lower than 2019 first half. (...) 19.4 billion dollars consolidated sales revenue (...) was 7% lower than 2019 first half, mainly due to lower prices and volumes for copper and lower aluminium prices. (...) 2.5 billion dollars interim ordinary dividend declared today, with interim pay-out ratio at 53% of first half underlying earnings, equivalent to 155 US cents per share, 3% higher than 2019 first half." Even if figures were below 2019 results, they were above market expectations.

From a chartist point of view, prices have broken above 2019 high area at 4600, now acting as a key support. In addition, prices are supported by a rising trend line drawn from 2020 low and by their ascending 20 and 50-day moving averages. As a consequence, traders may consider long positions above 4600 to target the 5500 Fibonacci projection and even the 5600 historical high area. Alternatively, below 4600 look for a consolidation towards the 4400 support base.

Source: GAIN Capital, TradingView

Related tags: Equities

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