NYSE:VALE   VALE S.A. SPONS ADS REPR 1 COM NPV
After a nice uptrend, Vale has stalled and formed a Head and Shoulders pattern. Notice the volume on the uptrend to the "head", increasing right? But notice after the stock hit support for the second time (after forming the head) the second shoulder move up is rather mixed. Volume tells us a little bit more on moves up rather than moves down. You don't need increasing volume for a move down, it's nice and supports the argument, but it's not necessary.

Wait to buy until the stock moves below the blue support line with decent volume but more importantly ending the day near or at its daily low (shaven bottom). Stocks like to consolidate for a few days before moving down on patterns like this, so i would wait to see if the stock remains around the same price but Stoch & CCI indicators move higher.

Next major support is at the $8.00 mark (38.2% retrace), with a drop through that finding support at $7.50 then just below $7.00.
Mar 30
Comment: ah, I love the anticipation! 20 DMA is about to fall through the 50 DMA, and it looks like both are acting as resistance. This little bounce (hopeully little) is setting up a really nice shorting opportunity.

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