Copper is often referred to as âDr. Copperâ due to its long-standing reputation as a barometer of global economic health. The metal is increasingly viewed as the ânew oilâ of electrification, given its essential role in electric vehicles, renewable power infrastructure, grid expansion, and digital connectivity. With long-term demand projected to outpace supply, copper remains a key commodity to monitor. Against this backdrop, attention turns to Rio Tinto PLC (RIO) as a representative name within the space.
Rio Tinto PLC is currently ranked 59th out of 248 names in the SIA International ADR report and entered the favored zone on December 26. The shares have displayed strong relative performance, rising four positions over the past day, ten positions over the past week, 42 positions over the past month, and 101 positions over the past quarter.
Reviewing the five-year weekly candlestick chart, a notable technical development occurred earlier this month when the shares broke above the $72 level. This level had previously acted as resistance, most notably in late January 2023, when the shares briefly touched $72 before reversing sharply lower. That prior move formed a classic shooting star pattern, characterized by a long upper shadow, a small real body, and little to no lower shadow, signaling selling pressure and a failed breakout attempt.
In contrast, the recent move above $72 has been decisive. The shares have continued higher and are now trading at new all-time highs, with Fridayâs close above $82.00 per share. This sustained strength suggests a materially improved technical backdrop compared to prior attempts at this level.
Now that the shares are trading at all-time highs, attention turns to the longer-term secular point and figure chart using a 5 percent scale to identify potential resistance and support levels in previously uncharted price territory. The recent breakout occurred earlier this month at the $72.53 level, which had served as long-term resistance dating back to 2008. With the shares now in new high ground, the next upside objective is $92.56, derived from a measured move projection. Should the shares extend beyond that level, the $100 psychological threshold would represent the next area of potential resistance. On the downside, support is identified at $65.78, based on the polarity principle and a 3-box reversal. Within a constructive Metals and Mining sector backdrop, which remains a favored group in the SIA Market Sector report, Rio Tinto currently exhibits a bullish Quad Top Pattern and holds a SMAX score of 8 out of 10, reflecting strong near-term relative performance versus other asset classes.
Rio Tinto operates globally with a diversified portfolio of mining assets, with its largest operations concentrated in North America and Australia. Iron ore represents the companyâs primary commodity exposure, supplemented by smaller contributions from aluminium, copper, diamonds, gold, and industrial minerals.
Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.
