Rio Tinto Vs. Vale: Both Mining Stocks Show Bullish Technical Signals Ahead Of Q4 Earnings

Zinger Key Points

Rio Tinto and Vale report Q4 earnings Wednesday, with both stocks showing bullish momentum but facing key resistance.
Vale’s stronger rebound suggests upside potential, but its high RSI signals overheating risk compared to Rio Tinto.
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Two of the world's largest miners, Rio Tinto PLC RIO and Vale SA VALE, are set to report their fourth-quarter earnings on Wednesday.

While both stocks have shown bullish technical signals, investors will be watching closely to see which one has the stronger post-earnings trajectory.

RIO: Bullish But Facing Resistance

Chart created using Benzinga Pro

RIO stock has climbed 9% YTD, with its stock trading above its eight, 20, and 50-day simple moving averages (SMAs) – a strong technical indicator.

However, it remains below its 200-day SMA of $64.55, suggesting a potential ceiling for further upside. With an RSI (relative strength index) of 66.54, RIO stock is approaching overbought territory, and selling pressure could lead to some post-earnings weakness.

VALE: A Stronger Rebound?

Chart created using Benzinga Pro

Vale, after a brutal 26.3% over the past year, has outpaced RIO so far this year with a 10.98% YTD gain. Like Rio Tinto, Vale is trading above its short-term moving averages, signaling bullish momentum. However, its RSI of 69.71 is higher than RIO's, indicating it’s closer to overbought levels.

The 200-day SMA at $10.55 could act as resistance, and investors will be watching if earnings provide the catalyst needed to break through.

Investor Takeaway

Technically, VALE appears stronger due to its more aggressive rebound and higher RSI, but it also carries more risk of overheating.

Meanwhile, Rio Tinto's selling pressure and resistance at its 200-day SMA suggest a potential consolidation.

Earnings will be key in determining which miner has the momentum to continue its rally. If Vale's results impress, it could break through its 200-day resistance, while Rio's performance will need to offset concerns about selling pressure.

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