Rio Tinto share price edged higher earlier on Wednesday, a day after the company released its fourth-quarter results. The company’s shares ended the day’s trading session 1.09% higher at $121.99.
Rio Tinto Group is an Anglo-Australian multinational company founded in 1873. The company is the second largest mining company in the world after BHP. Rio Tinto is a dual-listed company traded in the FTSE 100 index and S&P/ASX 200 indexes.
Rio Tinto share price has been under intense pressure for the past few weeks amid Covid-19 curbs in China. However, RIO’s shares have been struggling to pull back, gaining 3.32% in its year-to-date price. There is uncertainty about how China’s reopening will play out in the short-term outlook for Rio Tinto’s core market.
According to a report by the Australian mining company, China’s reopening is set to raise near-term risks of labour and supply chain shortages. Even so, being Rio’s key market, the easing of Covid-19 restrictions in China flagged a strong start to iron ore shipments in 2023.
Rio Tinto, the world’s largest iron ore producer, was in the limelight earlier on Tuesday after the company released its fourth-quarter update. Data released by the Australian firm, iron ore shipments in the fourth quarter of 2022 rose 3.8% to 87.3 million tonnes, beating analysts’ estimates of 86.2 million.
Rio Tinto has maintained its 2023 output guidance for iron ore shipments. Rio seems set to maintain its crown as the world’s largest iron producer. However, the company expects its copper production in Utah in the US to be challenged until its rebuilds its smelter operations.
Rio Tinto Share Price Forecast
The daily chart shows that the Rio Tinto share price has been under intense pressure for the past few weeks. The stock has managed to move above the 25-day and 50-day moving averages. It has also remained above the 50-day and 200-day exponential moving averages (EMA). Its Relative Strength Index (RSI) has slipped below the overbought zone.
Therefore, with Rio’s positive outlook for this year, the company’s shares are likely to be bullish as bulls target the resistance at $128.85. On the other hand, the bullish thesis will be invalidated by a move below the 50-day EMA at $112.70.