16 SEPTEMBER 2011Traders Huddle
Vale near Key Resistance Area
Edited by : AL CIRCLE
1 min read
Shares of Vale SA (NYSE:VALE) are trading very close to calculated resistance at $28.41 with the current price action closing at just $27.29 placing the stock near levels that make it difficult to buy.
Companhia Vale do Rio Doce (NYSE:VALE), through its subsidiaries, operates as a diversified metals and mining company worldwide. Vale produces and sells iron ore, pellets, manganese, alloys, gold, nickel, copper, kaolin,alumina,and potash. The Company is based in Brazil, where it owns and operates railroads and maritime terminals.
Vale's current stock range is defined by current calculated support defined at $25.77 and by the resistance level at $28.41, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.
Traders don't have a clear entry point for Vale, as the stock is well above support, however, as the stock pulls back towards $25.77 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $28.41 then traders will get an opportunity to enter Vale stock by establishing a position as the stock moves to a higher range.
Companhia Vale do Rio Doce (NYSE:VALE), through its subsidiaries, operates as a diversified metals and mining company worldwide. Vale produces and sells iron ore, pellets, manganese, alloys, gold, nickel, copper, kaolin,alumina,and potash. The Company is based in Brazil, where it owns and operates railroads and maritime terminals.
Vale's current stock range is defined by current calculated support defined at $25.77 and by the resistance level at $28.41, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.
Traders don't have a clear entry point for Vale, as the stock is well above support, however, as the stock pulls back towards $25.77 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $28.41 then traders will get an opportunity to enter Vale stock by establishing a position as the stock moves to a higher range.
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