$RIO Close Above $85.75 Could Target $87 Area
$Rio Tinto PLC(RIO)$
RIO Holds $85.68: Mining Giant Tests Key Resistance Amid China Demand Hope
Latest Close Data
Closed at $85.68 on Jan 20, up +0.65% from prior close. Currently just $1.66 (-1.9%) below its 52-week high of $87.34.
Core Market Drivers
Optimism is fueled by renewed expectations for Chinese economic stimulus, which could boost demand for industrial metals like iron ore and copper.
The stock's attractive 4.35% dividend yield continues to provide a floor for investor interest in a volatile commodity market.
Technical Analysis
Trading volume of 4.04M shares was near the average (Volume Ratio 1.04), indicating steady participation but not explosive breakout momentum.
Key technical indicators (MACD, RSI) are consolidating near recent highs, suggesting a pause before the next directional move.
Key Price Levels
Primary Support: $84.50 (yesterday's low & near-term consolidation floor).
Strong Resistance: $85.75 (recent swing high). A confirmed break above this level is crucial for a retest of the 52-week high.
Immediate Pivot: $85.68 (today's close). Price action here will dictate short-term bias.
Valuation Perspective
Forward P/E of 11.78 is above its historical average of 9.34, reflecting current optimism but also suggesting limited near-term upside unless earnings estimates are revised higher.
Analyst Targets
Coverage from 7 analysts shows a mixed but generally positive view. The average price target is $81.25, with a high of $112.00. Sentiment is constructive with 3 Strong Buy, 2 Buy, and 4 Hold ratings.
Weekly Outlook
Expect consolidation between $84.50 and $85.75 in the near term. A decisive close above $85.75 resistance could propel the stock toward the $87.00-$87.50 zone. Conversely, a break below $84.50 support may see a pullback toward $83.00.
Risk Disclaimer
This analysis is for informational purposes only and does not constitute financial advice. Investing involves risk, including the potential loss of principal. Past performance is not indicative of future results. Always conduct your own research and consider your financial situation before making any investment decisions.
For SG users only, Welcome to open a CBA today and enjoy access to a trading limit of up to SGD 20,000 with unlimited trading on SG, HK, and US stocks, as well as ETFs.
🎉Cash Boost Account Now Supports 35,000+ Stocks & ETFs – Greater Flexibility Now
Find out more here.
Complete your first Cash Boost Account trade with a trade amount of ≥ SGD1000* to get SGD 688 stock vouchers*! The trade can be executed using any payment type available under the Cash Boost Account: Cash, CPF, SRS, or CDP.
Other helpful links:
💰Join the TB Contra Telegram Group to Get $10 Trading Vouchers Now🎉
How to open a CBA. How to link your CDP account. Other FAQs on CBA. Cash Boost Account Website.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
