VALE S.A. (NYSE: VALE)

Technical analysis

Price

$ 14.69

52 weeks range

$ 10.39 - $23.18

Beta

1.06

Volume/ average

35.3m/29.1m

Sector

Materials

Dividend yield

7.69%

Vale is the largest iron miner in the world and one of the largest diversified miners, along with BHP and Rio Tinto.


VALE in September is substantially returned to the beginning of the year's level. We believe that the current bearish markets' reaction is exaggerated and we see good chances of upside in the medium term.


  • Strong distance from the 50MA: looking at previous fluctuations, the stock then tends to reconcile upward with the moving average.

  • RSI oversold: in the last 5 years, the stock has reached the oversold area only 4 times.

  • Support at $ 13.50: the stock stopped the bearish swings on the strong support area throughout 2019. This level was only broken at the break out of the pandemic.


The stock appears to be about to break the strong bearish trendline that could lead #VALE to consolidate between $ 16.00 - $ 17.00 and then start the bullish push.

The short-term trend is bearish, also confirmed by the MACD, but we believe there are now the optimal conditions for a recovery in the final months of the year also given the strong support on which the price is currently holding.


Entry range $ 15.00 - $15.50

Target 1 $ 18.00

Target 2 $ 21.00

Stop loss $ 12.00

OTB Global Investments

13 October 2021

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