Rio Tinto – Gaps lower, re-enters expanding channel
Shares opened lower today and are now trading at least 5% lower on the day around 2555 levels.
Retreat from 2800 (Oct 11 high) followed by a drop to 2550 levels adds credence to the bearish price RSI divergence on the daily chart. However, a 250 point point drop could lead to short-term loss of momentum and thus yield sideways action before further losses materialize.
The immediate support at 2487 (Apr 21) is likely to be put to test.
On the higher side, only a daily close above 2623 would suggest bearish invalidation.
Retreat from 2800 (Oct 11 high) followed by a drop to 2550 levels adds credence to the bearish price RSI divergence on the daily chart. However, a 250 point point drop could lead to short-term loss of momentum and thus yield sideways action before further losses materialize.
The immediate support at 2487 (Apr 21) is likely to be put to test.
On the higher side, only a daily close above 2623 would suggest bearish invalidation.
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