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A month ago I compared the big two Australian miners and found very little to spark my interest. Both seemed more likely to tread water in a range trading pattern and shorting seemed the way to go. As these giants represent substantial holdings for many investors, I thought I’d take another look.
Regardless of which weekly chart I look at for BHP, all I can see is range trading in the near to medium term:
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While this is the current picture, change is, of course, always possible. That is the nature of the markets. And as more data is added, Elliott charts do recount but it takes time for a weekly count to change.
The RIO 60-120 weekly chart suggests another low ahead:
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This could well be the case in the shorter term but further out - in the next year or so - the outlook for RIO is much better:
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The Elliot Wave monthly chart for BHP also looks promising for the next twelve months:
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If we apply the same monthly count to RIO, it looks really attractive but you don’t need to dive in immediately – there will be plenty of opportunities along the way.
Enjoy the ride
Tom Scollon |