Rio Tinto Group is the world’s second largest metals and mining corporation which has its headquarters in London and Melbourne. Founded in 1873 and traded under tickers $RIO at LSE, ASE and also in US in form of ADRs, it is a component of both the FTSE100 and ASX200 indices. In terms of operations, Rio Tinto is producing iron ore, copper, diamonds, gold and uranium. Besides its primary role as a minerals’ extractor, the company is active significantly in refining of bauxite and iron ore. From 2020, we saw a strong rally in commodities. Hereby, Rio Tinto has broken to the new all-time highs. Our projection 2 years ago was right. Now, we see a pullback happening in 3 swings. It provides a great long-term opportunity to participate in the bullish market again. Here, we present the updated view.
Rio Tinto Monthly Elliott Wave Analysis 08.08.2022
The monthly chart below shows the Rio Tinto stock $RIO at ASE. From the all-time lows, the stock price has developed a cycle higher in wave ((I)) of a grand super cycle degree. Hereby, Rio Tinto has printed an important top on May 2008 at 124.19. Obviously, the cycle up is an impulsive move; it shows 5 subwaves of a super cycle degree and an extension within the wave (III). From the 2008 highs, a correction lower has unfolded as a straightdown decline in the black wave ((II)). It has ended correcting the previous grand super cycle by printing an important bottom in December 2008 at 23.59. From the 2008 lows at 23.59, a new cycle in wave ((III)) has already started. As a matter of fact, break above 124.19 has confirmed another extension higher.
In shorter cycles, the advance in blue wave (I) from December 2008 lows is a leading diagonal being 5-3-5-3-5 structure. Clearly, red waves I and IV do overlap. Also, the cycle in blue wave (I) has set a new all-time high at 137.33 in July 2021. Then, from the top, a consolidation lower in wave (II) is unfolding as an Elliott wave zigzag pattern. So far, waves a and b have ended. While below 128.55, still more downside should take place.
Investors and traders can be looking to buy $RIO from 78.79-47.91 blue box area. Target will be 148.02-224.87 area and even beyond.
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