Orica Ltd (ORI) is a diversified manufacturer company that produces industrial and speciality chemicals, polyethylene, surface coatings for vehicles, food and beverages flavouring and fragrances, packaging and appliances. Orica also supplies explosive and blasting services to the mining, quarrying and construction industries. Orica businesses which operate globally are Orica Mining Services, Orica Consumer Products, Orica Chemicals and Minova.
Orica Mining Services offers a range of blasting products, services and technology to the mining, quarrying and construction industries. These operations run globally across Australia, Asia, Europe, Africa, North America and Latin America. Orica have been pioneering new technology in view of adapting to the global changes in the mining industry. The recent completion of the Dyno Nobel integration which delivered cost saving and improve in their production.
Orica Chemical is major supplier and trader of chemicals, services and technology to the water treatment, mining chemical and industrial chemical markets that are based in Australia and has operation in United States, the United Kingdom and Asia. The Chemicals group has three separate businesses; Mining and Specialty Chemicals, Watercare and Chemnet.
Demand from recently resource hungry China is decelerating at an alarming rate which is proving disastrous for even the biggest miners. ORI has enjoyed a recovery over the past few weeks but we feel the buying might be overdone and the problems it faces are far from over.
Looking to the bigger picture, ORI’s daily chart is still trading in a long-term downtrend, and remains well below the 200-day exponential moving average.
After gapping higher from $17.00, ORI has run into strong resistance around the swing point at $20.18. ORI’s price has started to consolidate in a tight price cluster, and this signals that the recent trend higher may be exhausting.
If the trend does run out of puff, ORI could see a quick reversal back to the lower boundary of a recent gap, around $17.
Disclaimer :This is just an opinion for general information only.
