VALE3 trade ideas
VALE SA Support and Resistance LinesWhite lines on the top and bottom are the major range lines. The yellow lines represent swing levels and trends. I placed a pitchfork analysis and you can see VALE is in a long term uptrend. I expect a break to the upside out of the triangle pattern and continue up inside the upward pitchfork. The next swing line, should it break to the upside, would be the next yellow swing line.
Aside from technicals, you have money flowing out of tech and commodities benefit from high interest rates. I expect with the technicals and macro trends for commodities to go up. However, the global economy and markets are on thin ice, so be cautious.
I made this analysis April 2022.
VALEWe are currently in a wedge on the Weekly Timeframe with a break of structure to the upisde. Monthly we are still strong Bullish and we just broke out a consolidation on the Daily Timeframe. We will be looking to scale in on our poistions at TP1 coming in at $18.59 and TP2 at $20.86
More updates coming on this Stock.
Vale Could Be Breaking OutBrazilian mining stock Vale has lost about one-third of its value since the spring, but now it could be showing signs of a potential turnaround.
The first pattern on today’s chart is the falling trendline along the highs of April and June. VALE broke that resistance early this month and bounced above it last week.
Second, you have a low in mid-July, a lower low in early September and a higher low in late September. Together, those have produced a basing pattern.
Third, prices have managed to turn the 50-day simple moving average (SMA) higher. It initially proved resistance in August and September, but the most recent bounce occurred at the same line. Is intermediate-term direction changing?
Next, last week had a bullish inside candle on the weekly chart.
Fifth, the 8-day exponential moving average (EMA) is back above the 21-day EMA. (This chart includes our 2 MA Ratio custom script.)
Finally, VALE has a new catalyst after saying on Friday it may spin off its copper and nickel divisions into a new company. That would separate the faster-growing metals (with green-energy links) from slower-growing iron ore. Could that excitement boost interest in a company trading for less than 5 times earnings (with a 20 percent dividend yield)?
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'Financed Vertical' for 3/17/23 Expiration$VALE
Financed Vertical for 3/17/23 Expiration.
While we all wait to see which way the wind is blowing.
This would be an idea that would probably be best served using margin in a trading account for collateral, (as opposed to using $1,200 in cash).
$20 short call
$16 long call
---{share price: $14.42}---
$12 short put
$408 max profit @ share price >$20 at exp.
Credit of $9 (or so) at order execution.
Breakeven @ $11.91 at exp.
VALE-Impending Breakout (WEEKLY)VALE has been consolidating for almost 3 months at a previous resistance. Now its preparing for a possible double bottom with a bullish divergence on both the RSI and MACD on the WEEKLY with higher relative volume over the past two weeks. VALE also has one of the highest open interests in the entire market especially for the OCT21 14,15 and 20 Dollar Calls. Yes, calls. An unusual sign considering the market has been selling off sharply. When the market reverses I expect this to go back to its next resistance of $18. This is one of my favorite setups to trade and offers fantastic risk to reward when entered properly. There is no entry yet as the timeline for the consolidation stage is still unknown. Entry will be a breakout at the $14.50. Also look for breakout occurring with strength returning to the broader market for the incoming boucne.
VALE: Ascending Broadening Wedge A bearish looking pattern amidst heavy inflation and stressful geopolitical turmoil.
Hitting resistance to head downward. This will eventually present a nice buying opportunity. Prescious metals will not stop being needed (even and sometimes especially during war times, too).
Best of luck all.
VALE ShortVALE looks like a short to me here. Three drives of bearish divergence on the 4hr MACD and daily RSI divergence. I could also argue for the MACD bearish divergence on the daily too. Throw in a potential bearish abandoned baby and I'm taking a short here at $20.52. Not quite a 3 to 1 reward to risk ratio, but it's close enough for me.