Will Rio Tinto turn, or will it continue to rise to 4479p March highs?

• Shares +7% in less than 2 weeks
• Shares recovering after paying a 7.1% dividend on 7 Mar.
• 18 Mar: Bernstein says, Rio Tinto is an undervalued outperformer.
• Now trading 4326p (at the time of writing).
• Will the positive momentum continue towards 4479p March highs?
• Shares -3.6% from 2019 highs; +20.6% from 2019 lows; +16% 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 4326p. To do this, you need £2,000.

Let’s assume the Rio Tinto trend continues to 4479p March highs (+3.5%). Your profit would be £350, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. Rio Tinto falls 2% and hits your stop-loss. Your loss would be £200.

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