Rio Tinto: Rally Two Years In The Making

Technicals | Dec 12 2023

This story features RIO TINTO LIMITED. For more info SHARE ANALYSIS: RIO

By Michael Gable 

The Australian market continues to edge higher since the S&P/ASX 200 Index broke above 7100 and our near-term target remains up near 7350. We highlighted last week how the rally in the US was broadening out and that continues to be the case, which is a good sign for the overall health of the market. US CPI numbers are out on Tuesday night, with the FOMC meeting to follow on Wednesday night. Everybody expects Federal Reserve Chairman Jerome Powell to talk down any chance of rate cuts next year and talk up the chance of further rate hikes if necessary. We all expect that, but let’s see if markets continue to ignore what he says and pay attention to the improving data instead. Despite what short-term negativity these events may bring, we remain positive on markets and stocks.

Our chart in this week's report highlights an opportunity in Rio Tinto ((RIO)).

Last week, we saw RIO break above a major resistance level (circled) after spending nearly two years forming a large "cup and handle" formation. This should be the start of a multi-month rally where we could see some significant upside. There will be light resistance in the $130's. Current levels are a buying opportunity.

Content included in this article is not by association the view of FNArena (see our disclaimer).
 
Michael Gable is managing Director of  Fairmont Equities (www.fairmontequities.com)

Fairmont Equities is a share advisory firm assisting Private Clients with the professional management of their share portfolio. We are based in the Sydney CBD but provide services to private clients across Australia. We believe that the concepts of fundamental analysis and technical analysis of stocks are not mutually exclusive. Regardless of whether you are a trader or long term investor, combining both methods is crucial to success. As a result, the unique analysis of Fairmont Equities is featured regularly in the media such as Sky News Business, CNBC, The Australian Financial Review, and the ASX newsletter. Contact us for a free trial of our research and information on our portfolio management services. 

Michael is RG146 Accredited and holds the following formal qualifications:

• Bachelor of Engineering, Hons. (University of Sydney) 
• Bachelor of Commerce (University of Sydney) 
• Diploma of Mortgage Lending (Finsia) 
• Diploma of Financial Services [Financial Planning] (Finsia) 
• Completion of ASX Accredited Derivatives Adviser Levels 1 & 2

Disclaimer

Fairmont Equities Australia (ACN 615 592 802) is a holder of an Australian Financial Services License (No. 494022). The information contained in this report is general information only and is copy write to Fairmont Equities. Fairmont Equities reserves all intellectual property rights. This report should not be interpreted as one that provides personal financial or investment advice. Any examples presented are for illustration purposes only. Past performance is not a reliable indicator of future performance. No person, persons or organisation should invest monies or take action on the reliance of the material contained in this report, but instead should satisfy themselves independently (whether by expert advice or others) of the appropriateness of any such action. Fairmont Equities, it directors and/or officers accept no responsibility for the accuracy, completeness or timeliness of the information contained in the report.
 

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RIO

For more info SHARE ANALYSIS: RIO - RIO TINTO LIMITED