Rio Tinto (LON: RIO) share price has been trading sideways since the mid of November. The shares of the metal and mining firm have overcome a major resistance but the bulls are lacking momentum to aim for more upside. Nevertheless, the technical outlook remains bullish on the stock.
On Tuesday, shares of Rio Tinto opened at £55.42 but closed at £55.17 as the sellers remained dominant. Nevertheless, the price closed still 0.6% above its previous close, resulting in a gain on the daily timeframe.
The sentiment on the London Stock Exchange remained mixed on Tuesday as investors remained cautious due to the release of the CPI report in the US. In addition, the Bank of England is also expected to make a decision on the interest rates on Thursday.
Therefore, LON: RIO may experience increased volatility in the coming days. However, bulls have nothing to worry as long as the stock holds the £54 level which was a previous resistance and may now act as a support.
As per the latest news, JPMorgan upgraded its rating of the Rio Tinto stock while also lifting its price target. The analysts at the investment bank expect the Brithish-Australian firm’s share to be priced around £70 soon.
Rio Tinto Share Price Chart
Technical analysis of the weekly chart gives a bullish outlook to the Rio Tinto share price forecast. This is because the stock is trading well above its 200 MA on the weekly chart which is a sign of great strength. The most likely scenario seems to be a retest of the £59.21 resistance level in the coming weeks.
The invalidation of this bullish price prediction will be an acceptance below the £54 level on the daily timeframe. A close attention must also be given to the strength of the FTSE 100 index and the upcoming FOMC meeting in the US.
