CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Rio Tinto is trying to get back uptrend

13:14 21 June 2022

One of the world's largest commodity conglomerates, Rio Tinto is seeing gains today amid positive news surrounding the company's stock:

  • Analysts at JP Morgan have upgraded and raised their price recommendation on Rio Tinto shares signaling nearly 11% upside potential for the current valuation increase;
  • The company today officially confirmed the opening of the company's most advanced iron ore mine 'Gudai Darra', the 17th in the company's 'fleet', located in Pilbara, Western Australia. Iron ore is one of the key commodities mined by RioTinto, along with aluminum and copper;
  • RioTinto's stock price has been losing ground in recent times due to a decline in demand for iron ore and a direct drop in iron ore prices. A projected slowdown in global manufacturing and weak economic data also contributed to the weaker sentiment;
  • RioTinto shares with a market capitalization of over £64 billion are 'weighing' heavily on the FTSE (UK100) index and contributing to its gains today.

Rio Tinto (RIO.UK) shares, W1 interval. The share price has been in an uptrend since the beginning of the pandemic and has suffered little from the crisis in global markets. The stock is trading in line with the uptrend line, from which the price has already bounced three times. The most recent declines were prevented in the fall of 2021. However, the price was not able to stay long above the 23.6 Fibonacci retracement, which it managed to break through three times. Each time, however, demand came back and knocked it down in the direction of 53 GBP where 38.2 abolition is located and bulls are now fighting to maintain this level. If the recession scenario is resolved and markets return to growths we may again observe a rally in commodity prices, which may positively influence RioTinto valuation. Potentially, however, recession and decline in industrial production in China, despite the favorable recommendations of JP Morgan, may contribute to a broader weakening and breaking the resistance near GBP 45, which coincides with the 61.8 Fibonacci retracement of the wave. Source: xStation5

Start investing today or test a free demo

Open real account Try demo Download mobile app Download mobile app

This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XIII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.

Back