Thursday, 10th October 2019 14:45 - by Rajan Dhall
The Rio Tinto daily chart below is showing some positive signs at the moment.
The trade talks which are going on at the moment between China and the US are very important and although the outcome is slightly binary it seems that the share price has based out.
Only if the news is catastrophic can we expect another move lower but if a trade deal is agreed interim or not the price could break higher.
On the chart, you can see by the grey rectangles that price has respected the trendline and 3900 support level. Now the price is above 4000 again any good news could see the price head to the mean value area at around 4250.
The RSI indicator has also shown a small breakout which can indicate that price momentum has turned bullish.
Either way, basic materials are still under pressure and today will be a game-changer, keep an eye on the headlines!
The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.