OK, so its probably safe to admit that RIO's slide has surprised us all.
I hope that none were caught in the swift decline from 98 - 87!
But where to from here?
The underlying company is sound. Profits were lower, and production didn't excite however its probably safe to say that RIO tinto is currently trading at a considerable discount.
TECHNICALS
- It punished the 50dsma over a week ago, at the $97 mark, where I thought we could see support. This support wasn't confirmed, so there was no buy signal.
- The market index sits on the 200dsma, and for RIO, this lies at $83.
- Next support is at $85 from April highs.
- Fibonacci 61.8 retracement is just under $85 taken from march lows. Taken from january lows, it puts the 61.8% retracement at $83.
- MACD is clearly negative and is diverging, with a recent flat histogram, suggesting that we may see some consolidation at current levels.
- Stochastics reveal oversold, but no buy signal as yet as %k and %d are both below 20.
- RSI is sitting on 30, suggesting its not oversold as yet.
Volume today on the decline was small. We finished higher than the open today.
CONCLUSIONS
1. Significant support at $85 and $83.
2. No current buy signal
3. A possible trade would be to consider accumulating stock between $83 and $85 (this is what I will be doing).
4. Downside target unlikely to exceed $80 (feb highs)
5. Wait for RSI to be below 30 at least, Stochastics to upturn on a double bottom, and MACD histogram to uptick before commiting serious money to the cause. Downside is always unexpectedly severe.
Any comments, always taken into consideration.
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- so where to from here...
OK, so its probably safe to admit that RIO's slide has surprised...
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Last
$107.02 |
Change
-0.070(0.07%) |
Mkt cap ! $39.72B |
Open | High | Low | Value | Volume |
$107.15 | $107.89 | $106.21 | $142.5M | 1.322M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 112 | $107.00 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$107.02 | 6294 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 112 | 107.000 |
1 | 749 | 106.610 |
2 | 40 | 106.500 |
8 | 41778 | 106.450 |
2 | 209 | 106.400 |
Price($) | Vol. | No. |
---|---|---|
107.050 | 3519 | 1 |
107.100 | 3867 | 1 |
107.140 | 3519 | 1 |
107.150 | 269 | 1 |
107.200 | 1000 | 1 |
Last trade - 16.10pm 06/09/2024 (20 minute delay) ? |
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