RIO.L finds support at 100-day moving average
RIO.L ended the week -0.77% lower at 4039.50 after gaining £21.00 (0.52%) today on low volume. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Friday's trading range was £73.00 (1.8%), that's below last trading month's daily average range of £90.22. Things look different on a weekly scale, where volatility is below the markets average with the monthly volatility being way below average. Prices continued to consolidate within a tight trading range between 3980.00 and 4082.00 which it has been in now for the last three days.
After trading as low as 3992.00 during the day, the market bounced off the key support level at 4011.00. The failure to close below the support might increase that levels importance as support going forward. Prices are trading close to the key resistance level at 4098.50. The stock found buyers again today around 3992.00 for the third trading day in a row after having found demand at 3980.00 in the prior session and at 3987.00 two days ago. After trading as low as 3992.00 during the day, the share found support at the 100-day moving average at 3999.06.
Rio Tinto shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend being bullish.
Selling could speed up should prices move below the close-by swing low at 3980.00 where further sell stops might get triggered. Trading close to May's low at 3905.50 we could see further downside momentum if potential sell stops at the level 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
|Bullish Break through SMA 20||TQ Pro Members Only|
|Close to Swing High||TQ Pro Members Only|
|Bullish Intraday Reversal||TQ Pro Members Only|
|Bounced off Technical Resistance R1||TQ Pro Members Only|
|Close to R1 Resistance||TQ Pro Members Only|
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