Stock on crucial support, is a big breakdown on its way? Rio Tinto stock price analysis.

• Rio Tinto’s stock stands on a crucial support due to sharp selling since July end.
• The current setup suggests a further downfall adding to the investor’s troubles.
• If the current levels are not held, a huge downside can be seen.

Rio Tinto engages in mining and processing of mineral resources. The company is a leader in the segment and is widely known. It was started in 1873 and is currently run from London.

The company’s financials look good with slight growth every year. Past 3 quarters have been slightly negative in terms of revenue growth but the overall condition looks stable. 

Technical analysis for the company-

Rio Tinto stock has performed fairly but the current scenario looks weak. Constant selling has brought the stock near a very strong support at 45.7£. Further, no signs of recovery are visible which means we might see the price going even below than what it is currently.

45.7£ has acted as a very strong support in the past 1 year and if the price crosses this level, there is no major support below so we might see a freefall. Rio Tinto stock is already down by 20% this year and the next few weeks dont look good too.

Seeing the past movements in the chart, there is a fair chance that we might see sideways movement in the stock before there is any big move. 

Sellers have been super dominant as the 1 hour chart shows. Another thing to notice here is that as we move close to the support at 45£. We see the candles getting smaller which means that the sellers too are exiting the stock. The stock is at a major support and this can possibly lead to a jump in the stock.

If buyers enter in good quantity and we see a positive confirmation, one can enter Rio Tinto stock with 50.6£ as the first target. Only if the stock breaches this level, we should expect higher levels ahead.

Analysts predict Rio Tinto stock to not go below this level in the long run. A possible surge of 15-20% is expected in a year from the stock as per experts. One must wait for a strong confirmation before making any trade.

Conclusion:

Rio Tinto stock is at a very crucial level but a further downside is not expected. If that happens, we have no support so the stock might do down heavily. If there is a buying movement from here, we should expect good upward moves in the coming months.The next 4-5 days become very crucial for the stock as we might get some clarity for the stock’s future.

Important Technical Levels-

Major support levels- 45.7£

Major resistance level- 50.6£ followed by 54.3£.