- Summary:
- The Rio Tinto share price could face significant headwinds ahead of 6073 as the fall in metal prices and damning report on Mongolian copper mine hit.
Rio Tinto’s share price is trading flat after spot metals endured a day to forget on the back of Friday’s NFP, which strengthened the case for early tapering.
Gold and silver prices suffered a flash crash on Monday, while palladium and platinum prices also suffered massive selloffs last Friday. The situation has depressed sentiment around Rio Tinto’s share price, which has struggled for bullish momentum all day.
The report by an expert group reviewing cost overruns at the Mongolian Oyu Tolgoi copper mine in which the company has a majority stake, is also weighing on sentiment. The report indicates that contrary to the company’s position that unfavourable rock conditions caused project costs to balloon from $5.3 billion to $6.75 billion, mismanagement by the company was to blame.
The Wall Street Journal, which reported the news, says UK and US regulators are reviewing the matter.
Rio Tinto’s Share Price Outlook
Rio Tinto’s share price has so far failed to attain Friday’s high, which tested resistance at 6073. If the price candle can garner enough momentum to surpass this mark, 6168 becomes the next target. Above this level, 6349 and 6553 are additional barriers to the north.
On the other hand, a decline below the 5975 support opens the pathway for the price to attain 5799. 5615 is an additional support level (21 June low), along with 5510.
Rio Tinto: Daily Chart
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