Will Rio Tinto break support, or will it rise again back to 4016p recent highs?

• Rio Tinto has shallow rising support since late September 2017.
• Bounced 4 times, most recently last week off 3489p.
• Now trading 3609p (at time of writing).
• Will the pattern repeat itself? Will the shares bounce and rally back to 4016p October highs again?
• 6 Dec: Investment bank Wilsons is bullish on Australian miners, saying free-cash-flow generation is likely to be significant.
• Shares -22.3% from 2018 highs; +1.9% 2018 lows; -8.4% year-to-date.
• 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 the price is heading back towards 4016p again. You decide to buy exposure to £10,000 worth of Rio Tinto using a CFD, at the current price of 3609p. To do this, you need £2,000.

Let’s assume Rio Tinto rises back to 4016p (+11.2%). Your profit would be £1120, 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 falls 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.