- UBS upgraded The RIO stock Rating from sell to neutral.
- The RIO stock has reported a declined revenue and net income growth.
- RIO Tinto stock price is trading in a tight range of $58 and $68.
The current market price of the Rio Tinto- $62
The Rio Tinto stock price has been consolidated in a range of $58 and $68 for 7 months. If we observe the broader time horizon, the price has been trading flat since 2021. It is facing strong resistance from the level of $76 and taking support near the level of $50. The stock price has shown a strong uptrend since 2016.
The Rio Tinto stock price has surged by over 400% since 2016. This could be a reason for the current consolidation of the price, as it needs some breathing space after a good surge. Another reason could be poorly performing financial numbers. The company has seen a decline in its revenue and net profit in the financial year 2022.
The RIO Tinto company is maintaining its debt nicely. The company has paid a dividend of $4.91 in the financial year 2022. It can attract some dividend-seeking investors to invest in the RIO stock.
A Quick Overview of the Chart
As we have discussed above the stock price has been consolidating in a range. The price has formed a range inside the broader range. It indicates that both buyers and sellers are trying hard to dominate but are failing to do so. It can be possible that the price is being operated by some operator.
The RIO stock is trading very close to the trendline support level. The price has reacted strongly to this trendline, as it has shown a jump more than 3 times. The resistance for the stock is present at the level of $68 and $74. If we consider the support level, it is present near the level of $58 and $49.
A short sight of the indicator
Exponential Moving Averages
RIO stock price is trading below both the 50-day and 100-day Exponential Moving Averages. It is a bearish signal for the stock. The stock price can face some rejection from these EMA lines. Both the EMAs are present at $62.34 and $62.47. The curve of the EMAs is flat, which supports the statement that the stock is consolidating.
Relative Strength Index
The relative strength index is currently placed below the 50-line. However, the curve of the RSI is upward which is a good sign for the bulls.
Conclusion
RIO stock price has been consolidating in a range for a long time. If the company posts a surprise in the upcoming quarters, it can show some great move on either side. The price can face some rejection near the level of $68 and $74. The support zone for the price is present at $58 and $49.
Technical Level
Resistance – $68 and $74
Support – $58 and $49
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.