Based on the production numbers released earlier this week, RIO Tinto will produce over 300 million tons of Iron ore this year.
The price of Iron Ore has seen an increase in week-to-week volatility which has kept RIO’s share price active.
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With Spot Iron Ore prices around USD $63.00, a drop back into the $50.00 area represents a material risk to the company’s cash flow, and to the share price.
Our ALGO engine triggered a buy signal in RIO back in April at $61.40.
Even though we have not seen a sell signal generated, proper money management suggests that taking profits over $70.50 is a reasonable strategy.
We will look for a pullback in price to reenter long positions.
RIO Tinto
