Unlike the URNM ETF which we expect to buy this morning, with RIO we are looking to “lay a trap” at lower levels as peers like BHP and FMG come under pressure – BHP was ~20c lower in the US on Friday even when the SPI was trading up +0/3%.
- We like the risk/reward towards RIO into further weakness as iron ore drifts lower but we may tweak our entry level as the week unfolds.
Trade Idea: Buy RIO Tinto (RIO) using a $124.50 limit, with stops at $120, ~4% risk.
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