Indicators argue for a technical correction after the last bullish movement recorded in past sessions.
Graphically, the stock went through a period of rebound in recent sessions towards the GBp 1950 short-term resistance. The share should consolidate near this area. It could act as a stopping point of the upward movement. This scenario suggests a return to the GBp 1735 support area (corresponding to the 20-day moving average) which will be a bearish objective.
The graphical configuration argues to establish a short trade at current prices. The end of the technical rebound, the consolidation phase and overbought situation: Rio Tinto has all the characteristics for short selling.
The first objective will be fixed near the GBp 1735 short term support and by extension the GBp 1577 area. This strategy should be protected by a stop loss above GBp 1951.