RIO.AX finds buyers at key support level
Rio Tinto Ltd (RIO.AX) Technical Analysis Report for May 18, 2018
RIO.AX ended the week 2.3% higher at 85.81 after losing A$0.94 (-1.08%) today. Closing below Thursday's low at 86.00, the stock confirms its breakout through the prior session's low having traded A$0.86 below it intraday.
Friday's trading range was A$1.76 (2.03%), that's far above last trading month's daily average range of A$1.11. Weekly volatility is also higher, being slightly above the markets average with the monthly volatility being slightly below average.
Even with a strong opening the market closed below the previous day's open and close, forming a bearish Engulfing Candle.
After trading as low as 85.14 during the day, Rio Tinto bounced off the key support level at 85.32. The failure to close below the support could increase that levels importance as support going forward. After having been unable to move above 87.09 in the prior session, the share ran into sellers again around the same price level today, failing to move higher than 86.90.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 87.09 where further buy stops could get activated.
While classical technical analysis indicates a slightly bearish sentiment for the next trading day, our quantitative statistics show a different picture being very bullish.
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