ContraryTrader

Vale falls out of channel

Short
NYSE:VALE   VALE S.A.
After attempting to breakout over 23$ finally after 3months of consolidation , Vale was rejected with a gap below and close below 50ma. Added to to that bad setup is

shaven head candle stick
Increase in selling volume
A close outside of uptrend for the first time since last Nov.

Conformation would be a drop below 100ma at 20.56 and close.
Target is a place of heavy support around 18.10.
They still have a gap to close around 17.50

OBV ,MFI, Macd All bearish on both weekly and daily time frames

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