Rio Tinto (Friday’s close US$64.42) rallied from US$21.89 in January, 2016, to US$60.72 in June, 2018 (A-B), and then settled in a wide horizontal trading range mostly between US$45 and US$63 (dashed lines). Although the stock dipped temporarily below this range in March (C), it quickly recovered and is currently trading near the top of the trading range (D). A sustained rise above US$63-$64 would signal a major breakout and the start of a new up-leg toward higher targets.
There is good support near ±US$59 then again at US$54-55; only a sustained decline below this level would be negative.
A rise above US$63-64 would signal initial Point & Figure targets of US$69 and US$79. The large trading range (dashed lines) supports potentially higher targets.
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Monica Rizk is the senior technical analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com
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