Rio Tinto (LON:RIO) was trading 4% higher on Monday morning, after Chinese President Xi Jinping’s speech earlier today at the Boao Forum in Hainan, China. Xi promised to continue to encourage trade and investment - and also to boost imports such as automobiles. Both the Chinese and US markets traded higher.
Looking at the weekly chart for RIO, we see a stock that is making higher highs and higher lows with market cycle. This is a bullish cycle pattern, similar to many in its sector. As RIO recently began the rising phase of a new market cycle, we expect more upside in the near term future, with a reasonable expectation of testing the last high, near $60, in coming weeks.
