RIO.L finds support at 20-day moving average
Moving higher for the 2nd day in a row, RIO.L ended Thursday at 4402.00 gaining £5.00 (0.11%). Trading up to £38.00 lower after the open, Rio Tinto managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move past the prior day's trading range. Ending with a strong close near the high of the day sets a bullish note for the next session.
Thursday's trading range was £99.00 (2.27%), that's above last trading month's daily average range of £83.95. Things look different on a weekly scale, where volatility is below the markets average with the monthly volatility being below average. Prices continued to consolidate within a tight trading range between 4317.50 and 4420.50 which it has been in now for the last three days.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar.
Prices are trading close to the key resistance level at 4428.50. The stock ran into sellers again today around 4416.50 for the third trading day in a row after having found sellers at 4409.50 in the previous session and at 4420.50 two days ago. After trading as low as 4317.50 during the day, the share found support at the 20-day moving average at 4346.35.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 4472.50 where further buy stops might get activated.
While classical technical analysis indicates a neutral sentiment for the next trading day, our quantitative statistics show a different picture being bullish.
Market Conditions for Rio Tinto Group
|Bearish Outside Bar||TQ Pro Members Only|
|Black Candle||TQ Pro Members Only|
|High close to previous High||TQ Pro Members Only|
|RSI(2) below 20||TQ Pro Members Only|
|High close to previous two Highs||TQ Pro Members Only|
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