Another visit to RIO.ASX Monthly chart to see what it may be up to ? A violation of the neckline drawn in Dashed Green as a Resistance line is now on hand. At least intra month this is, looking at this monthly RIO.ASX chart. The Inverse Head & Shoulders Pattern would be complete if the end of month close is strong. We must therefore wait for the month of October to be complete, before any conclusion is made on this front. We must also remember that not all the completed patterns succeed. Should the pattern be successful, it yields a tentative bullish price objective of approx. $70.50. At present RIO.ASX is still within a long term down trending channel, but this Inverse H&S Pattern becomes the most dominant pattern relevant to the current price action behaviour.
Support in the zone of $46.50 becomes a short term support level to watch on any pullback into the pattern. Zone of $55.00 – $56 is the next resistance level on the upside.
RIO.ASX Monthly Chart below as @ week ending with 07/10/2016.
Below is the weekly chart showing various support levels and neckline in dashed Green. OBV at the bottom window is also in sync and in harmony with the price action.
Daily Chart below for fine tunning things.
How about PnF for Tentative Bullish Price Objectives ? All on the chart.
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