.

Swing Trade Idea (RIO) – March 21, 2024

Our bullish trade for Thursday, March 21st is Rio Tinto plc ADR (RIO). RIO is part of the Materials Sector, which traded at 7.73% over the last month, with RIO underperforming at -3.11% over the same period.

RIO has been underperforming relative to its sector, but has recently found support at the $60 mark, which is a long-term area of support. With bullishness in its sector as well as recent dovishness from the Fed, we expect to see RIO bouncing off this support with the next area of resistance at around $68 – $69.

As a close, if RIO were to trade below $61 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We will also consider cutting losses on this options trade if the value of the vertical spread moves above $1.56.