Rio Tinto (RIO) is well-known as one of Australia’s largest mining companies. It is a $160 billion iron ore miner that’s currently benefitting from higher commodity prices.
“Despite the higher commodity prices, RIO’s share price is down from its recent highs,” Michael said.
“The big question is whether these cheaper levels are a buying opportunity.
“After the March peak, RIO trended lower and the daily volatility was quite large.
“In the past few weeks, however, we’ve seen volatility die down, as RIO started to form a small base.
“The last couple of days have seen it nudge above that range and therefore this looks like a low is in place and current levels are a buying opportunity.
“A close above $100 will be further confirmation that RIO is ready to recover from here,” Michael concluded.
Rio Tinto Limited (RIO)
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