Will Rio Tinto turn, or will it continue to rise towards 2008. highs of 5800p?

• Breakout above 4500p to trade 4696p  (at time of writing).
• The ‘trend is your friend’. Will it continue towards 5000p? (+7%)
• Shares at 2019 highs; +23% from 2019 lows; +25 year-to-date.
• 31 Mar: Rio Tinto cut its 2019 outlook for iron ore shipments from Australia’s Pilbara
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Rio Tinto – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue to 2702p . You decide to buy exposure to £10,000 worth of Rio Tinto using a CFD, at the current price 2495p (at time of writing). To do this, you need £2,000.

Let’s assume the Rio Tinto trend continues upwards to 2702p (+8.2%). Your profit would be £820, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Rio Tinto breaks lower, falling 3% and it hits your stop-loss. Your loss would be £300.

This is provided for information purposes only. It should not be taken as a recommendation.