VALE trade ideas
It is time, Simba….Bounce of the 200 ma - commodities seem to be doing well… might be time to hop on
Thoughts?
Vale S.A. ADR (VALE)Vale S.A. ADR
Strong Sell recommendation ...
But still have a chance to Target $15.10 and then $16
Ideas ??
What To Do About Commodities?Good morning everyone! Every Thursday morning we highlight our favorite trade setup of the week. This week, we will be taking a look at a High Yield setup in $VALE.
It's been an interesting week of trading, and the kind of price action & news flow that gets you thinking about the bigger picture. Yesterday, we saw this chart, and it got us thinking about the commodity space & how to best position -- twitter.com
While the sentiment of the tweet we view as somewhat extreme, the idea that commodity production will be an outperforming theme over the next several years seems highly interesting. There are some incredible values in the XLB & XOP space, among them $VALE. While the price of Iron Ore has come off drastically over the last few weeks on the back of the Evergrande / China situation (China consumes by far the most amount of raw materials globally), the resulting price from shorting a $12 strike December put seems too good to pass up. Either you get the stock (which pays a great dividend, by the way) at a great price, or you get to keep some free yield off of attractive exposure. Given the long term potential for inflation & commodities, this seems like a Win / Win.
By shorting these puts, you get paid a 3% return over 86 days, which is a higher yield than 90% of dividend stocks & light years ahead of bonds - and that's before you annualize it. What could be better in a market full of richly valued companies? Value, yield, and margin of safety.
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Valevale is on the verge of completing its initial 5 waves down into Wave A.
look to pick it up at $16.80, with a price target for the mean retracement (wave B) at $20.71
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note, corrections come in 3's, so this 5 waves down from the local peak is counted as Wave A, followed by Wave B, and then the final flush for Wave C into the local golden zone.
Once that wave C is in, Vale will go on a full blown, parabolic run.
We'll talk about it later.
2nd buying opportunity coming for VALENote : weekly bearish trend broke out
day chart - awaiting for retracement to support level
$VALE with a Bearish outlook following its earnings #Stocks The PEAD projected a Bearish outlook for $VALE after a Positive over reaction following its earnings release placing the stock in drift B
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VALE DailyNYSE:VALE tried to go up five times and will not break through. Now it looks like it is about to fall off a cliff.
Vale falls out of channelAfter attempting to breakout over 23$ 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
$VALE Bullish looking chart$23 is the level to break for a much higher target. $26 & $29 targets possible for the patient. Stick to a stop loss.
$VALE Box setup$VALE moving into a box setup now ahead of earnings on the 28th. Watch how the stock behaves then and look for a low risk entry.
VALE neutral short termThe sloping dotted red line is key. It's looking like it will either pull back slightly, or just keep plowing through... keep in mind this is the monthly chart.
Vale fell through wedge (Short)Rising wedge on daily.
Usually there is a dead cat bounce with this pattern and i wouldnt be surprised if we got a bounce .786 fib before a continuing drop to target 16.70.I know that price drop seems steep but the fallout of a rising wedge usually matches the width of the entry into the wedge
VALE Testing top of Ascending TriangleNYSE:VALE Is testing the upper bound of a textbook ascending triangle pattern: well-defined boundaries, and decreasing volume. Implied Price Target ca. $26 upon a successful breakout.
If traded through delta (cash), there's a nice 3:1 reward:risk up at the PT with a stop at $21.80 (ca. $1 below resistance).
Reward:Risk Analysis
Reward: ca. + $3 (at $26)
Risk: ~ ca. $1 (approx. middle of triangle).
Reward:Risk : 3:1
$VALE Overview - S-tier stockA quick overall look at $VALE.
Very clear wave structure from a technical perspective - looks like a wave 3 of a Supercycle is happening.
Solid financial sheets.
Low P/E ratio.
5% dividends.
Overall an S-tier stock.
Still, be considerate when entering a trading position as there may be short-term pullbacks possible (latest 5 wave up move and forming an ending diagonal/wedge?).
Clear VCP in $VALE, I'm waiting for the breakoutSo the technicals are great, excellent uptrend with the price above its MAs and now formming a third base in which I'm waiting for the breakout to enter a position. The pattern is accompanied by low volume, that's good too. Also, is leading its sector. Very strong realtive strength against the Steel ETF AMEX:SLX , which has a 17% allocation of the stock.
Today Zacks gave it a Rank #1 for STRONG BUY and, is Rank #1 in its industry in the IBD Investors Group Leaderboard with a 92 Rating on the IBD Relative Strength. These are all good bullish signs. I'll be setting a stop buy order in $23.35 with a sell target in $27.10.
Another thing I like is that NYSE:VALE has a strong revenue growth since 2017.
Expectation Record VALE for 28 Jun 2021 - 2 Jul 2021Resistance 1 : 23.00
Support 1 : 21.50
Support 2 : 19.50
VALE depend on International IRON Price but must stand above 23.00 in order to continue break new High. If unable to break, will look back Support_1 : 21.50
Vale pennant break out Breakout came with a 27$ price upgrade from Dow jones.
1st target is Fib 1.618 (Greenline).
