Rio Tinto stock on crucial support. Is a big breakdown on its way?

Rio Tinto’s stock stands on a crucial support due to sharp selling since July end.
The current setup suggests a further downfall adding to the investor’s troubles.
If the current levels are not held, a huge downside can be seen.

Rio Tinto engages in mining and processing of mineral resources. The company is a leader in the segment and is widely known. It was start in 1873 and is currently run from London.

The company’s financials look good with slight growth every year. Past 3 quarters have been slightly negative in terms of revenue growth but the overall condition looks stable.

Technical analysis for the company-

Rio Tinto stock has performed fairly but the current scenario looks weak. Constant selling has brought the stock near a very strong support at 45.7£. Further, no signs of recovery are visible which means we might see the price going even below than what it is currently.

45.7£ has acted as a very strong support in the past 1 year and if the price crosses this level, there is no major support below so we might see a freefall. The stock is already down by 20% this year and the next few weeks dont look good too.

Seeing the past movements in the chart, there is a fair chance that we might see sideways movement in the stock before there is any big move.

Sellers have been super dominant as the 1 hour chart shows. Another thing to notice here is that as we move close to the support at 45£. We see the candles getting smaller which means that the sellers too are exiting the stock. The stock is at a major support and this can possibly lead to a jump in the stock.

If buyers enter in good quantity and we see a positive confirmation, one can enter Rio Tinto stock with 50.6£ as the first target. Only if the stock breaches this level, we should expect higher levels ahead.

Analysts predict the stock to not go below this level in the long run. A possible surge of 15-20% is expected in a year from the stock as per experts. One must wait for a strong confirmation before making any trade.

Conclusion:

The stock is at a very crucial level but a further downside is not expected. If that happens, we have no support so the stock might do down heavily. If there is a buying movement from here, we should expect good upward moves in the coming months.The next 4-5 days become very crucial for the stock as we might get some clarity for the stock’s future.