Rio Tinto’s share price (LON: RIO) is showing signs of a bearish trend despite starting strongly in the early hours of today’s trading session with a price surge of more than 2 per cent. At press time, it is trading at one per cent below its opening price but still above yesterday’s closing price due to a bullish market gap.
Based on recent news events, such as the Bank of England announcement that the UK had entered into a recession, the past few trading sessions of Rio Tinto in the markets have been impressive. There were fears that such a statement from the Bank of England could trigger a broad market selloff, which would have resulted in Rio Tinto’s share price plummeting.
On Monday, a note issued to investors by JPMorgan Chase & Co. showed they had hoisted their Rio Tinto ((LON: RIO) share price from 5,350p to 5,580. This was a clear indication that the market analysts saw a potential move to the upside of the Rio Tinto share price despite indicating their rating was neutral on the company.
During yesterday’s trading session, Rio Tinto prices hit the lower trend line of the ascending channel it has traded within for the past few weeks. However, the prices failed to break out of the ascending channel to the downside and a price surge of 2 per cent from the day’s lows of 4,602p to the closing price of 4,698p.
Today, the markets opened with a huge bullish gap of a percentage point and quickly rose by another percentage point. However, in the past few hours, the intraday trading has been bearish, which has seen prices dropping below the opening price.
Despite this, my Rio Tinto price prediction expects it to continue with yesterday’s bullish push. Like analysts from JPMorgan Chase & Co., I expect Rio Tinto to trade above the 5,000p price level for the long term. My analysis will only be invalidated if prices fall below yesterday’s price low of 4,602p.
This post was last modified on Sep 27, 2022, 12:46 BST 12:46