It looks like RIO can't make up its mind at the moment from hitting a VERY long term resistance line at the top and a short term one underneath. I think whichever line it breaks meaningfully first might decide which way it goes
Shares opened lower today and are now trading at least 5% lower on the day around 2555 levels.
Retreat from 2800 (Oct 11 high) followed by a drop to 2550 levels adds credence to the bearish price RSI divergence on the daily chart. However, a 250 point point drop could lead to short-term loss of momentum and thus yield sideways action before further losses...
Rio Tinto weekly chart shows inverse head and shoulder breakout, although subsequent rise has been capped repeatedly around 2550 levels.
On the daily chart, both the RSI and money flow index suggest increasing bearish pressure on prices.
Hence, we could a minor drop to 2390-2350 area.
However, overall view stays bullish unless the weekly close is below...
Hi Everyone, there is a sell setup for RIO -0.89% on the London Exchange.
It is in a corrective ascending triangle which we are waiting for to break down and out of. A high risk entry is available on lower time frames now which could bounce up off the lower trend line but otherwise we will wait for the break and retest of the lower trend line for the sell.