Anyone got a clue what's happening with Rio Tinto this past week or so - up from approx £13 to £14 in a week? Apparently a move from defensives to cyclicals - but surely more to it than this? Good news in the offing or time to short?
From a technical point of view it broke out of it's resistance level, and then the buying power started to take effect.
The red line was the first barrier that it had to clear. Once that went then the price quickly moved up to 1360 (the green line) which was the next resistance point and as there was still greed buying - it took the price higher.
Well you won't know if there is any good news out until it's out and then it's too late. As for shorting....not part of my strategy, so not for me - that's not to say it won't go lower from here though