We have been following RIO each week and lately noting its breakout from consolidation in the NFTRH+ Notes segment. We have also been noting Copper and Industrial metals as being bullish among the mixed bag of bullish and bearish commodities. Let’s take a closer look at this diversified miner.
Here is the multi-company chart that appears in NFTRH’s Commodities segment. It includes RIO and some of its fellows in the resource mining area. It is at a new high for the move that began in early 2016. This appears to be a ‘yes’ vote for the global economy, which as we have reviewed on occasion is growing, after all.
This could be considered momentum chasing, something that I am personally not naturally attuned to as a bottom feeder (which has its own share of challenges). Here is a weekly chart that shows RIO getting above the neckline to what looks like a bullish pattern. Sometimes I don’t believe my own patterns but it is worth noting that bullish patterns on both AAXJ (Asia) and EEM (Emerging Markets) have each handily exceeded targets that I was not sure would ever come about when they were plotted. So… the chart is the chart.
The monthly shows that not only is the stock tentatively above the pattern’s neckline, but it also is more definitively above a downtrend line of the highs from 2010. That’s a big picture breakout of sorts, with the final obstacle being to make a higher high to the 2014 high.
As long as RIO can stay above the neckline and 46, it would target 70. So says the chart’s measurement.
A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the buy, sell, stop parameters are already noted. They are meant as a starting point for further research if interested. I will not personally buy every item highlighted and will sometimes sell – without prior notice (because this takes time and resource away from NFTRH’s main functions) – any item that I do buy, below target, which is something I often do as a trader. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.