Rio Tinto stock: buy or sell
Updated on:
Apr 22nd, 2021
2
Rio Tinto stock brief
- Rio Tinto stock grew 1.51% to close at $86.00 on the stock market on Wednesday.
- The stock is configuring an uptrend pattern since October 2020, when it bottomed at $52.94. Up to date, the uptrend made a 62.45% gain since the beginning of this rally
- Royal Bank of Canada published a neutral rating for Rio Tinto on Wednesday
- Rio Tinto Group engages in exploring, mining, and processing mineral resources worldwide. The company offers aluminum, copper, diamonds, gold, borates, titanium dioxide, salt, iron ore, and uranium.
Should I buy Rio Tinto stock?
All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $RIO stock a buy?
Currently, Rio Tinto stock matches 2 trading strategies:
Uptrend buy setup
Rio Tinto stock continues to trend higher since in October 2020 and marked an amazing 62.45% gain. Price marked a pull back in this uptrend at $73.61 in late March, and since then it bounced up a 16.83%. Breaking out above $88.74 - it's last top - will be a good entry point if Rio Tinto resumes the uptrend. If you decide to enter this trade, the suggested stop loss is at $79.87
| Buy setup | Buy point | Stop loss | Risk |
| Uptrend buy setup | $88.74 | $79.87 | 10.00% |
ATH buy setup
One of the most recommended trading strategies is to buy on All-time Highs (ATH) breakouts. The good point of buying at all-time highs is that shares price doesn't struggle with upper resistances, and usually it rises rapidly. However, there's the risk of a bulls trap that may trigger your buy order and then falls sharply. That's why a stop loss is always important. Rio Tinto can break to all-time highs any time soon, as it only needs to rise a 3.19%. The buy point is at $88.74 if you want to trade with this strategy. Arm your stop-loss at $79.87
| Buy setup | Buy point | Stop loss | Risk |
| ATH buy setup | $88.74 | $79.87 | 10.00% |
Should I sell Rio Tinto stock?
Knowing when to sell a stock is even more difficult than knowing when to buy it. Trading strategies give us the ability us to avoid impetuous decisions based on our emotions or the buzz surrounding the market. Our trading system selects very simple strategies to guide us on when is the best time to sell a stock. Be aware that these strategies are not intended for shorting Rio Tinto stock
A guiding principle is that you must never keep a trade that generates higher than expected losses by the time of the buy. When to sell your stock must always be dictated by the stop-loss (automatic or manual)
Is it time to sell Rio Tinto stock?
Currently, Rio Tinto stock doesn't match any of our preferred sell setups, so if you hold Rio Tinto shares and your operation is in profit probably is not time to sell now
Rio Tinto ratings
In the last month, 6 analyst ratings were published for Rio Tinto
| Brokerage firm | Rating |
|---|---|
| Mar 24th, 2021 | |
| Morgan Stanley | |
| Mar 31st, 2021 | |
| DZ Bank | Neutral → |
| Apr 7th, 2021 | |
| Barclays | |
| Berenberg Bank | Neutral |
| Apr 15th, 2021 | |
| JPMorgan Chase & Co. | Buy |
| Apr 21st, 2021 | |
| Royal Bank of Canada | |
Rio Tinto stock analysis
Rio Tinto stock started an uptrend in October 2020, and grew a gorgeous 62.45%. The price shows higher peaks and higher troughs, and along the way gave some buy points for those who wanted to trade in. Latest low was in late March, when price bounced at $73.61. Now, the price trades in a consolidation between its last top ($88.74) and its last bottom ($73.61)
SMAs overview
Supports and resistances
The current resistances are:
The current supports are:
Bollinger bands
Since the price surpassed the upper band last Monday, the price has been corrected downwards by 0.94%. The price is trading very close to the upper Bollinger band, indicating some level of overbought in recent sessions. This is not a sell signal, as price can trade in these levels for many days and weeks
Relative strength index
The RSI dropped below the overbought level of 70 last February after just crossing to the overbough zone for just one day (weak signal). The RSI value on Wednesday was 65.51. Since RSI lost the overbought zone, Rio Tinto stock went down a 1.88%
Rio Tinto stock price history
Rio Tinto went public on Jun 28th, 1990 priced at $2.56 per share1. Since then, RIO stock has risen by 3,259.38%, with an average of 108.65% per year. If you had invested $1,000USD in Rio Tinto stock on the IPO, it would be valued $33,593.75 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Rio Tinto stock
How much a stock will be priced tomorrow or next week is quite unpredictable. However, many stock price predictions are posted every day by banks, financial institutions and independent analysts.
Along with buy or sell recommendations, brokerage institutions publish their price predictions based on the stock price action and the company fundamental data. Most of these forecasts follow the release of new financial data by the company, and many times. If you are a small trader you don't have to trade based on these price targets.
We don't have any target price published in the last 30 days for Rio Tinto.
| Brokerage firm | Price target |
|---|---|
| Mar 24th, 2021 | |
| Morgan Stanley | Not available |
| Mar 31st, 2021 | |
| DZ Bank | Not available |
| Apr 7th, 2021 | |
| Barclays | Not available |
| Berenberg Bank | Not available |
| Apr 15th, 2021 | |
| JPMorgan Chase & Co. | Not available |
| Apr 21st, 2021 | |
| Royal Bank of Canada | Not available |
Earnings and financials
Rio Tinto ($RIO) hosted the shareholders event and presented the report in July 2020.
Compared to the same quarter one year ago, EPS was $3.02, so posted EPS means -100.00%. Looking at revenue, figures exploded a 12.50% compared to $112.2B same quarter 12 months ago.Rio Tinto ($RIO) will host the quarterly earnings call.
Earnings reporting day has a more than usual risk for investors as the data posted can jump up or down the stock price with very low volume and not honouring your buy or stop-loss orders. It's always good to review company's website to confirm time and details on the earnings call and the earnings report.
Rio Tinto performance
| Company | 1m | 3m | 6m |
|---|---|---|---|
| Rio Tinto ($RIO) | 14.50% | 8.20% | 51.90% |
Important:
The thoughts published in this article are personal and not recommendations for you to buy or sell shares. The author of this paper does not have an understanding of the individual situations of the reader, his or her own finances or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are provided for learning reasons onlyRio Tinto summary
| Wednesday, April 21st, 2021 | |
|---|---|
| Open | $83.93 |
| Close | $86 |
| Day range | $83.58 - $86.24 |
| Previous close | $84.72 |
| Session gain | 1.51% |
| Average true range | $2.27 |
| 50d mov avg | $81.15 |
| 100d mov avg | $77.38 |
| 200d mov avg | $67.75 |
| Earnings date | December 31st, 1969 |