Will Rio Tinto turn, or will it continue to rise to 2018 highs around 4540p?

• Shares +24.2% from November 2018 lows.
• Accident at rival Vale’s mine in Brazil spiked iron ore prices.
• 5 Jan: Brazil halting the use of dams over the mining accident.
• Now trading 4301.5p (at the time of writing).
• Will the positive momentum continue towards 4540p?
• Shares trading at 2019 highs; +19% from 2019 lows; +15.3% year-to-date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Rio Tinto– An Example

Let’s say the trend appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of Rio Tinto using a CFD, at the current price of 4301.5p. To do this, you need £2,000.

Let’s assume the Rio Tinto trend continues to 2018 highs of 4540p (+5.5%). Your profit would be £550, 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 falls 3% and hits your stop-loss. Your loss would be £300.

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