 Hello and welcome to the CMC markets chart of the week video with myself Dev Madden market analyst here at CMC markets Today's date is Wednesday the 7th of February and the time is just coming up to 12 p.m. Midday UK time And the chart of the week this week is going to be Rio Tinto the mining company Taking a look here at the chart on a weekly basis to begin with we can see that Rio Tinto along with other mining companies Suffered heavily during the commodity route of 2015 and into early 2016 But since creating the low here in early 2016 The stock has been in a classic upper trend where we saw a series of higher highs and higher lows In fact only last month the stock trade at a level not seen since 2011 so give the indication of how bullish the comeback has been on the for the company Rio Tinto I'll just flip over now to a daily chart So you just get a better view of how how much the stock rallied between the early Jack between early December and the middle of January when they hit that level they're not seen since 2011 so the solid upper push here Which began in early December which ran through up to the middle of January as the market was pushing higher here We saw a steady increase on the MACD indicator the MACD Instagram positive momentum So the momentum was clearly with the buyers then we can see that the stock continues to push to a new multi-year high In the meantime, we do see a bit of a decline in positive momentum So the diversions between the two the stock is hitting fresh multi-year highs But the versions isn't hitting higher high while the MACD indicator is not hitting higher highs In fact, it's actually declining the diversions between the two was an early warning sign that the the bulls and the buyers We're running on a bit of steam So we did see a bit of a pullback in the share price Beginning in the middle of January that was matched by a decline in positive momentum and then even a swing into negative momentum But negative momentum over the last two sessions, even though we have seen some severe sell-off recently Negative momentum has sort of been kind of floored at this level here Now in the meantime the share price even though Caught up in the major sell-off of global equity markets in the last few days Even though it did trade below the fifth-day moving average is now back above the fifth-day moving average. So It's possible that since Rio Tinto has been in a strong upper trend for the last couple of years It's possible that the the bounce the the move lower we saw yesterday and the bounce back today Could be the beginning of the next upward leg in the in the move of Rio Tinto So if the stock holds above the fifth-day moving average, which comes into play in this line here At 38 38 18 if we did manage to hold above that level We could look to actually push higher from here and potential levels of resistance to the upside could be 40 40 Which was the late January high and if you take our 40 40 the next big level to keep an eye on for will be the 2018 high of a 41 87 And if you go beyond 41 87 the next big level to watch out for will be 4407 a level not seen Since 2011 but if you do manage to fall back below the fifth-day moving average at 38 18 We could and should we fall below that we could be looking at moving south again A continuation of the downward trend that we've in the short term downward trend that we've seen Since the middle of January if you do manage to fall below the 50 moving average The first level to keep an eye off for will of course build the will be the February low of 37 43 And if you move south of that the next step to keep an eye off for will be 37 or 7 the one hundred a moving average because notice how What a moving average in a few occasions in both November and also December Actors both some support and resistance on a number of occasions If you do manage to fall below Uh 37 or 7 the one hundred a moving average the stock may drift out towards the charity moving average Which comes into play at 35 16 Notice how the stock even on the lows of December didn't quite get as low as the 200 a moving average So from a charity point of view It's been a solid upward trend for the last couple of years and the pullback you've seen in the last few sessions And and the subsequent and the subsequent bounce back today Could be the beginning of the potential next leg up on Rio Tinto from a desk That's looking at the stock from a charity point of view. It's also worth noting that Rio Tinto had Full your figures out today. We saw a rise in profits and declined the net debt And increased the share by buyback scheme and the company even declared a record dividend For the year. So from a fundamental point of view, the stock is looking quite positive as well That's all for me this week. Thank you very much