16 June 2016 at 7:01 GMT
Joe Neighbour from Central Markets gives his trade view on Rio Tinto.
There was a big bullish candle on the close yesterday as the mining shares topped the leader board on the FTSE100. The mining shares have gone a little quite in recent weeks as we have seen a consolidation take place. The move yesterday from trend support suggests that the bulls remain active in this sector and that we could see those trends reassert.
Neighbour is looking to buy at market, above the stop which is at 1840p. 2500p is the target – so over 25% to the upside.
Neighbour chooses a wide stop loss on these trades as they can be volatile and especially because of the UK referendum on the horizon.