MOVING MINING STOCKS. Report summary JULY 2017

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1 MOVING MINING STOCKS JULY 2017 JULY 2017 Report summary - - Which mining stocks are ready to move in Q3 2017? - This free report features detailed analysis on the major mining stocks in the UK. - Clear analysis on where we think the markets are heading including the risks and opportunities associated with each. - Technical analysis covering likely trends, support and resistance targets using the proprietary Trendsignal indicators.

2 About Trendsignal Trendsignal is an award winning Trading Education provider. Founded in 2003, the company provides clients with proven and simple to use trading strategies that can be used on Forex, Indices, Commodities and Shares. Our unique indicators and rules-based trading strategies can be used by traders of any experience, anywhere in the world. Trendsignal specialises in the training and education of individual traders and the training and support to help them achieve results. Each Trendsignal client is taught what they need to know, in order to trade the financial markets using our leading strategies. They receive full training, 1 to 1 coaching and twice weekly online workshops to help ensure they understand exactly when to enter trades and exit them for maximum profit potential. For more information on how Trendsignal can help your trading and investing, please book a free place to one of our live trading workshops and find out more. Page 1

3 ANGLO AMERICAN PLC (AAL:LSE) About the company Anglo American plc is a mining company. The Company has a portfolio of mining operations and undeveloped resources with a focus on diamonds, copper, platinum group metals (PGMs), and bulk commodities and other minerals. Its segments include De Beers, Platinum, Copper, Nickel, Niobium and Phosphates, Iron Ore and Manganese, Coal, and Corporate and others across the world. Broker consensus 8 Buy & Outperform, 8 Hold, 10 Underperform & Sell. (Source: FT.com 29 th June 2017) Income statement (GBX) Year on year Anglo American PLC grew revenues 4.51% from 20.46bn to 21.38bn while net income improved from a loss of 5.62bn to a gain of 1.59bn. Chart & analysis Page 2

4 With an overall down trend in place, for the moment, expect rallies to be short lived. With a current buy trade since Tuesday, 26 th June (See yellow disk), we expect a brief move upwards before a potential reversal down to new lows. Referring to the longer term targets, we see support at approx. 728p, with significant resistance in the 1096p area. A move above 1096p should see prices continue to move higher over the medium term, perhaps returning towards 1271p. Will shares in Anglo American PLC (AAL:LSE) rally towards 1096p or fall towards 728p. A 20,000 position (1976 shares) as a Spread Bet or CFD can be secured with a deposit of approx (5%) in your account. Going long at 1012p with a price target of 1271p would mean a 25% profit. Going short at 1012p with a price target of 728p would mean a 28% profit. Page 3

5 ANTOFAGASTA PLC (ANTO:LSE) About the company Antofagasta plc is a copper mining company. The Company is engaged in by-product production and has interests in transport. The Company's segments include Los Pelambres, Centinela, Michilla, Antucoya, Zaldivar, Exploration and evaluation, Railway and other transport services, Mining, Water concession, and Corporate and other items. Its operating divisions include Mining and Transport. Broker consensus 12 Buy & Outperform, 11 Hold, 1 Sell. (Source: FT.com 29 th June 2017) Income statement (USD) Year on year Antofagasta PLC had net income fall % from m to m despite revenues that grew 12.28% from 3.23bn to 3.62bn over the same period. Chart & analysis Page 4

6 ANTO has been in a healthy uptrend for the past 12 months or more, following a low of 340p in Jan 2016, subsequently rallying to 905p this year. With a current price of 788p the market is pulling back but it is early to tell whether this is a correction, or the start of another wave down. One thing we do know is that support seems to be forming around 750p and a break below there would surely confirm a new downward turn in the share price, with 656p on the horizon as a low price target. On the upside, a new move back above the 900p level should see continued higher prices. We would anticipate 1070p as the next area of resistance. Will shares in ANTOFAGASTA PLC (ANTO:LSE) rally towards 1070p or fall towards 656p. A 20,000 position (2538 shares) as a Spread Bet or CFD can be secured with a deposit of approx (5%) in your account. Going long at 788p with a price target of 1070p would mean a 35% profit. Going short at 788p with a price target of 656p would mean a 16% profit. Page 5

7 BHP BILLITON PLC (BLT:LSE) About the company BHP Billiton Plc is a global resources company. The Company is a producer of various commodities, including iron ore, metallurgical coal, copper and uranium. Its segments include Petroleum, Copper, Iron Ore and Coal. Broker consensus 10 Buy & Outperform, 9 Hold, 4 Sell. (Source: FT.com 29 th June 2017) Income statement (USD) Year on year BHP Billiton PLC's revenues fell % from 44.64bn to 30.91bn. This along with an increase in selling, general and administrative costs has contributed to a reduction in net income from a gain of 1.91bn to a loss of 6.39bn. Chart & analysis Page 6

8 Similar to AAL, the monthly trend turned down in April, although we haven t seen much of a fall yet. We have seen a few great buy trades (against the trend) recently, where we have been looking for short small gains, followed by bigger falls in line with the longer term trends. This makes this latest buy an interesting proposition. We bounced from a higher low and a break to a higher high could see the trend turn back up, with 1337p and 1472p as the next major areas of resistance. However, a daily close below 1119 should see lower prices, perhaps down to 944p. Will shares in BHP BILLITON PLC (BLT:LSE) rally towards 1472p or fall towards 944p. A 20,000 position (1696 shares) as a Spread Bet or CFD can be secured with a deposit of approx (5%) in your account. Going long at 1179p with a price target of 1472p would mean a 24% profit. Going short at 1179p with a price target of 944p would mean a 20% profit. Page 7

9 RIO TINTO PLC (RIO:LSE) About the company 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. Broker consensus 17 Buy & Outperform, 3 Hold, 6 Sell. (Source: FT.com 29 th June 2017)) Income statement (GBX) Year on year Rio Tinto PLC had revenues fall -3.01% from 34.83bn to 33.78bn, though the company grew net income from a loss of m to a gain of 4.62bn. Chart & analysis Page 8

10 A Sniper short signalled at the end of May on the monthly chart, and that is pretty hard to ignore! The most recent buy is counter trend, and one wonders whether the market can get back above that 3255 pivot point. If it cannot, we must surely expect to see prices move back inline with the new monthly down trend. So what might that mean? Time will tell of course, but the major levels of support are 2924p and then 2736p. A break above 3255p however should see a break towards the February highs, around 3677p. Will shares in Rio Tinto PLC (RIO:LSE) rally towards 3677p or fall towards 2736p. A 20,000 position (633 shares) as a Spread Bet or CFD can be secured with a deposit of approx (5%) in your account. Going long at 3155p with a price target of 3677p would mean a 16% profit. Going short at 3155p with a price target of 2736p would mean a 13% profit. FIND OUT MORE If you have enjoyed this report, then why not learn our trading and investing strategies? Our simple strategies have made over 45,000 pips since January Our free online webinars will tell you exactly when to enter and exit trades using our Sniper Strategy, which can be used on shares, FX, indices and commodities. Click here to book your free place now. Page 9

11 Disclaimer This report is provided for information purposes only. It is general in nature and does not constitute an offer or a recommendation to enter into any transaction. Trendsignal Limited are not authorised and regulated by the Financial Conduct Authority and this report must not be considered investment advice. The research may be unsuitable for certain investors, depending on their specific objectives and financial position. No responsibility is taken for any losses, including, without limitation, any consequential loss, which may be incurred by acting upon the contents of this report. Spread betting and CFD trading carry a high level of risk to your capital and can result in losses that exceed your initial deposit. They may not be suitable for everyone, so please ensure that you fully understand the risks involved. Information used in this free report has been gathered from public sources that are believed to be reliable, however we shall not be liable for any errors, or for any actions taken in reliance thereon. The value of shares referenced in this report can fall and rise. Page 10