Technical Analysis Snap: Rio gains on disposal

18th Aug 2009 17:07

Rio Tinto was given a minor boost on Tuesday when it received a $2bn offer for the majority of its Alcan Packaging business. As an opportunity to pay down its debt levels to more manageable levels it could not have been better timed. However, over the past few weeks Rio has been stuck in a broad range between resistance around 2,600p and support around 1,800p. If the stock is unable to get back above the 4 peaks around 2,600p then the risk of a decline towards support at 1,800p, remains a risk especially if commodity prices continue to slip back as they have been doing over the past few days. There is also minor support around 2,200p, last week's lows.