“There has recently been a lot of negativity around Chinese growth and iron ore prices,” Michael said.
“We have sensed that this bearishness was overdone, and the market was in a similar position to November 2022, which saw a massive rebound in iron ore stocks.
“RIO is one such stock that’s showing signs of being at the start of another recovery.
“A few weeks ago, we saw RIO break under support near $108 before rebounding back above it.
“Momentum indicators were also suggesting a bottoming out down at those levels.
“We are now seeing a turnaround in RIO’s share price.
“We expect a swift recovery to retest the recent highs near $130.
“Given the prospect of Chinese demand picking up in the latter half of 2023, RIO shares have a strong chance of breaking through the old price ceiling and start trading at all-time highs,” Michael said.
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