Rio Tinto Shares Eye $200 Milestone

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This story features RIO TINTO LIMITED.
For more info SHARE ANALYSIS: RIO
The company is included in ASX20, ASX50, ASX100, ASX200, ASX300 and ALL-ORDS

Rio Tinto shares appear poised for a breakout towards $200, Fairmont Equities' Michael Gable reports, with strong buying support during recent consolidation reinforcing a positive technical outlook.

By Michael Gable

Weaker unemployment numbers last week have pushed back the prospects of more rate rises here in Australia, but one gets the sense the damage is done and it will only get worse in a few weeks from now as oil prices start spiking higher again.

Markets are still very complacent about the oil situation; it looks like everything is OK, so it must be OK.

We are also conditioned to think that all crises get resolved with more printing and liquidity.

We have a unique situation here where we can’t print more barrels of oil.

Even the CEO of Chevron this weekend has made it clear we are just weeks away from using up all the oil reserves which have kept a lid on prices, and then things really start to get interesting.

Markets still move on headlines of a “deal” and believe it won’t be long until the Strait of Hormuz is “open”.

Our view has not changed — now is the time to use this complacency as a chance to stock up on energy stocks. 

Today, we offer a technical view on Rio Tinto ((RIO))

We have looked at Rio Tinto on a few occasions since November and noted the buying opportunities along the way.

It has traded very well in the past several months, with each new consolidation building on top of the other.

At the moment, it is consolidating just under the May high (circled) and this is a bullish sign as profit takers are clearly being met with solid buying support.

Rio is most likely just days away from making a run towards $200.

Rio Tinto remains a buy at current levels.

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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