Will Rio Tinto break higher, or will it fall again to 3500p?

• Range since Aug/Sept; resistance 4 times; Now 3914p (at time of writing).
• Will the pattern repeat itself, testing previous 3500p lows?
• Shares -14.2% from 2018 highs; +12.6% from 2018 lows; +4.8% year-to-date.
• 17 Jan: RBC says Q4 solid but iron ore prices a worry
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Rio Tinto – An Example

Let’s say you like the Rio Tinto range, you think it’s heading back towards 3500p again. You decide to sell exposure to £10,000 worth of Rio Tinto using a CFD, at the current price of 3914p. To do this, you need £2,000.

Let’s assume Rio Tinto fall back to 3500p (-10.6%). Your profit would be £1060, 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 rises 5% and hits your stop-loss. Your loss would be £500.

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