Rio Tinto (RTP),
a large mining conglomerate, has completed three separate stages
of an upside move that began in 2002. Each succeeding upside stage
exhibited a steeper rate of increase than the previous stage with
the third upside stage being very steep to form a price bubble.
The stock peaked at $237.12 on July 9, 2007 and then dropped 21.68
percent by the August 9 close of $256.12.
The current downside has support at $240, but be cautious if you
plan to buy the stock, because it could continue to decline much
more.
Related Articles:
Metal Mining Stocks
Price Patterns - A
Bubble Top Is an Extreme Pattern
Price Patterns
- Support Levels May Constrain Price Downsides
Price Upsides
Often Occur in Three Stages
Posted August 10, 2007.
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