8/12VALE is in a channel for two and half year. Get ready to short the stock when it reaches the channel top.
VALED trade ideas
Cat in the Hat Pattern on FisherLooking at Indicator study here. I noticed a pattern that @nmike passed along to us all, the Fisher Cat. That Cat works well to find peaks and bottoms or significant trend reversals. On this chart I also noticed a hat pattern followed by a cat, which suggest a trend reversal was about to take place. Not only did we have the pattern to work with, we also had divergence in all indications, RSI, Slow Stoch-Fast Stoch, MACD, Fisher and TRIX (yellow ascending lines compared to Vale chart with horizontal yellow line = divergence). The indication lines also merged on all my indicators as you can see with green circles. This was a good time to buy call options for the end of the month (which I already sold). This was an extremely risky move but the reward was significant.
You can also use these indications if you like. Hit the "make it mine" and you can follow along on any stock.
VALE has increased volume and breaks long term trend lineVale has increased volume and has just broken this long term trend line . It could be set for a nice comeback, I am going to trade this but I will be buying stocks for a long term investment as it could take a while for China's steel needs to return. Previous dividends have been quite good, I expect 3-4% in divs and potential growth as well.
Vale is one of the top 3 metal and mining production companies. Steel and Iron Ore are currently low because of an increase in supply of iron ore and a slowing economy in China who buy 60% of the worlds Iron ore..
Vale is down 20.29% on 1 year change
P/E: 6.11
EPS: 3.07
Annual Div: 0.5885
Vale SA (Vale) is a Brazil-based metals and mining company. The Company services are divided into four segments: Bulk Material, including the extraction of iron ore, manganese and ferroalloys, as well as pellet production; Basic metals, comprising the production of non-ferrous minerals, including nickel, copper and aluminum; Fertilizers, including the production of potash, phosphate and nitrogen; and Logistic services, including cargo transportation for third parties divided into rail transport, port and shipping services. Additionally, Vale is active in investments in joint ventures and associate in other businesses. The Company operates in more than 38 countries, including mineral exploration activities in 21 countries.
Miner Setup?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.
