In my last review of Rio Tinto Group (RIO) way back on March 10, 2022, I wrote that "If you went long RIO in early January when I presented the BOOSTER portfolio, I would continue to hold but risking a close below $69."
Traders would have eventually been stopped out but prices subsequently rebased in the July to November period last year. Let's check on the charts again.
In this daily bar chart of RIO, below, I can see that share prices turned higher in November and rallied strongly into late January. The shares pulled back into February but now look poised to resume the uptrend. RIO could close back above the 50-day moving average line today.
The On-Balance-Volume (OBV) line shows strength from late September. The MACD oscillator is slightly below the zero line and poised for an upside crossover and potential buy signal.
In the weekly Japanese candlestick chart of RIO, below, I see an improved picture. Prices are trading above the now rising 40-week moving average line.
The weekly OBV line shows strength from late September and tells me that buyers of RIO are more aggressive than sellers. The MACD oscillator is above the zero line but the trend strength has weakened.
In this daily Point and Figure chart of RIO, below, I can see a possible downside price target in the $62 area. A trade at $75.96 could refresh the uptrend.
In this weekly Point and Figure chart of RIO, below, I can see a potential price target in the $92 area. A trade at $68 could weaken the picture.
Bottom-line strategy: RIO may trade sideways for a while but I think the February pullback could be the extent of the correction. Aggressive traders could repurchase RIO around current levels risking to $67. Add to longs above $80. The $92 area is our price target now.
