Rio Tinto Stock Price Prediction ($RIO) and Forecast: Bullish Pre-breakout Structure?
Rio Tinto Group (NYSE: RIO) and Trek Metals announced a partnership that included an option to collaborate on the Jimblebar nickel-copper project in the Pilbara region of Western Australia.
According to a report, this undertaking possesses considerable potential for forming magmatic nickel-copper sulfide minerals and comprises the western segment of the Jimblebar greenstone belt.
Rio Tinto may acquire an 80% joint venture interest in the Jimblebar project at any time during the option period, per the parameters of the agreement.
Let’s dive into our Rio Tinto stock price prediction and forecast to see if this stock is a buy or a sell.
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Rio Tinto ($RIO) Company Overview
Rio Tinto plc, a mining and metals corporation headquartered in the United Kingdom, is dedicated to producing essential materials that are vital for the progress of humanity. Its primary sectors include minerals, iron ore, aluminum, and copper.
The organization manages a comprehensive portfolio of Iron Ore assets, including seventeen mines, four independent port terminals, and a 2,000-kilometer rail network.
Their aluminum operations include smelters, bauxite mines, and alumina refineries in Guinea, Brazil, and Australia.
The Copper segment of the organization engages in exploration activities, including the Simandou iron ore project, and in the mining and refining of copper, gold, silver, molybdenum, and other byproducts.
The Minerals sector includes companies that manufacture titanium dioxide feedstock and borates and is responsible for the operation of the Iron Ore Company of Canada. In addition, Rio Tinto is engaged in lithium exploration and diamond mining, sifting, and marketing operations, among other ventures.
Rio Tinto Stock (RIO) could be a good option if you want to expand your trading. In the following section, we will see the complete price outlook of this stock from the RIO technical analysis.
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Rio Tinto Stock ($RIO) Awaits A Range Breakout
In the weekly chart of RIO, a strong corrective price action is visible as the recent price shows a significant high or low formation in the higher timeframe. However, a potential descending channel breakout is present with an upward slope in the 20-week EMA, which suggests an upward trend continuation.
In the monthly candlestick, the has formed a possible Inverse Head and Shoulders pattern, where the 80.53 level is the neckline. Therefore, a bullish weekly close above the 80.53 level would validate the inverse Head and Shoulders breakout and initiate a bull run.
In the main chart, the latest high volume level since the October low suggests a bullish accumulation at the near-term congestion area. It indicates an ongoing trend after an accumulation, suggesting a trend trading opportunity.
The 14-week RSI remains correct above the 50.00 line in the secondary indicator window and has yet to reach the overbought area. It suggests that the price has more room upward to continue higher until the RSI reaches the overbought 70.00 line.
Based on the weekly outlook of RIO, the corrective price action could extend in the coming days as the gap between the price and 20 EMA has expanded. However, a high probability of a long opportunity might come after making a valid breakout above the 80.53 level, which could increase the price toward the 97.50 resistance level.
On the other hand, a bearish correction and a weekly close below the 66.96 level could be a short opportunity, targeting the 52.00 level.
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Rio Tinto Stock ($RIO) Ichimoku Cloud Analysis
According to the Ichimoku Cloud analysis of RIO, the daily chart suggests ongoing buying pressure as the current price trades above the Cloud support. Moreover, the thickness of the future cloud is solid, which might work as a confluence support to bulls.
On the other hand, the Average Directional Index (ADX) indicates suggests an overbought market, as the current level is the highest in the last nine months. As the ADX remains steady above the 20.00 line, we may expect buying pressure after completing a considerable correction.
Based on this Ichimoku outlook, investors might expect a bearish correction, where a daily candle below the 71.52 near-term support level could lower the price toward the 66.96 zone.
On the other hand, a bullish continuation is possible from the 71.52 level, which needs a solid rebound with a candle close above the dynamic Kijun Sen.
RIO Could Form A Bullish Trend Continaution
In the daily chart of RIO, the recent price shows impulsive buying pressure, supported by the rising moving average level. Also, the buying pressure has come with a solid range breakout, which is a strong sign of ongoing bullish pressure.
In the volume structure, the visible range high volume level is within the consolidation zone, suggesting an order building. However, the current price looks overbought from the high volume level, which might need a downside correction before extending the existing trend.
Based on this outlook, any immediate downside pressure with consolidation below the 68.11 level could lower the price towards 59.81.
Is RIO Stock A Sell?
Based on the current market outlook, RIO is more likely to form a long-term bullish trend after a valid Inverse Head and Shoulders Breakout. Investors should closely monitor how the price reacts to the Neckline resistance before anticipating a stable trend.
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