VALE has been a tough stock to trade, as are many of the miners. The daily chart of VALE is showing a potential Inverse H&S bottom formation, and the weekly is showing a similar picture with a near equal measured move. Navigating this trade is up to the risk tolerance of the individual, but a decent 20% gain could be had in a couple months time.
RSI is strengthening, though needs to kick in with a move higher. Break above the black dashed neckline would be potential confirmation. Slight resistance at 200 MA and further up at 61.8 retracement from early Spring swing high. Prudence would call for trimming if we get to this level. Trail up the stop, but don't be too tight as movements can be wide.
Any questions or thoughts, leave a comment.
Comments
TheSessionMaker
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Not good. 16.50 needs to hold to get this back in check, but this setup is looking more busted by the day.