Will Rio Tinto turn, or will it continue to rise towards Jan 2008 highs of 5900p (+21%)

• Breakout above 4815p to trade 4849p  (at time of writing).
• The ‘trend is your friend’. Will it continue towards 5900p (+21%)?
• Shares -0.6% from 2019 highs; +35.2% from 2019 lows; +30 year-to-date
• Miners getting a boost from China growth/stimulus hopes
• 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 5900p . You decide to buy exposure to £10,000 worth of Rio Tinto using a CFD, at the current price 4849p (at time of writing). To do this, you need £2,000.

Let’s assume the Rio Tinto trend continues upwards to 5900p (+21%). Your profit would be £2100, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Rio Tinto breaks lower, falling 5% and it hits your stop-loss. Your loss would be £500.

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