One of the best Bullish Bats I have ever seen!This one is a super longterm opportunity, you ask why???
It does not matter which EV company you are investing in the next 5-7 years, they all need Nickel for the batteries of their product and Vale is the biggest Nickel producer in the world..!
IMO: When fundamental does supports the technical, there will be little room for doubt..!
Buy the corrections in this stock for the next 5-7 years..!
XVALO trade ideas
$VALE Epic! Thinking PT 40 by end of Aug$VALE PT 44 by 5/06/2021-11/30/2022
Thinking PT 40 by end of Aug
Multi-leg:
1) Calls 25 Jun 18th 2021
Return +6,233%
2) Calls 25 Jan 21st 2022
Return +2,271%
Vale S.A., together with its subsidiaries, produces and sells iron ore and iron ore pellets for use as raw materials in steelmaking in Brazil and internationally. The company operates through Ferrous Minerals, Base Metals, and Coal segments. The Ferrous Minerals segment produces and extracts iron ore and pellets, manganese, ferroalloys, and other ferrous products; and provides related logistic services. The Base Metals segment produces and extracts nickel and its by-products, such as copper, gold, silver, cobalt, precious metals, and others. The Coal segment is involved in the extraction of metallurgical and thermal coal; and provides related logistic services. It also offers platinum group metals. The company was formerly known as Companhia Vale do Rio Doce and changed its name to Vale S.A. in May 2009. Vale S.A. was founded in 1942 and is headquartered in Rio de Janeiro, Brazil.
VALE ON NMVALE ON NM
Our contribution calmed to the highest possible summit and continues to rise to When the resistance line is in contact, it stops dropping until contact is made This line of support must be purchased with good market monitoring The latter also knows very large volumes of buyers and liquidity Find strong
Vale : digging a bit deeper?One of the top mining companies along with BHP and Rio Tinto, #VALE is benefiting from higher than many expected steel prices.
Move up though looks somewhat overstretched by now, formed a divergence with RSi and is not supported by volumes.
A healthy correction to $14,75 (Fibo level) would be logical.
2020 Actual Trade: VALE +34% Profits
Notice 4 month flat top broadening pattern for VALE from July to November
Resistance line was set to 12
VALE quickly ramped up from 11/02 to 11/09 as a reminder that something big was going to happen soon. So, it was the time to prepare and watch the pullback
Shallow pullback 11/13 and 11/16 at 11.5 was a final reminder that VALE was ready to rally above 12
Thus, 11/17 was the perfect timing when VALE crossed 12 line and we got in at 12.57
VALE did excellent by running all the ways for the next month and finished with +34% without looking back.
$VALE S.A $18.00 Price Target
November was a great month for the long suffering investors in VALE,
eventually that horrible 12 year downtrend broken.
Near term gains now depend on breaking above the 200ma on monthly chart.
Next major target is $18.00 where Fibs and horizontal resistance will come into play.
Vale up trendI m publishing it quite late due to lack of attention but vale is about to climb higher due to weakness in dollar and increased price quoted in commodities... I wouldnt suggest to enter fully now but build position slowly.. it will reverse and will give chance for long term view... for moment vale is trend up
Battery Day Option PlayTesla Battery Day is happening this Tuesday 9/22/2020. I will be purchasing call contracts at a $14 strike price with an expiration date of October 23rd.
During Tesla’s Q2 earnings call, Elon laid out how badly they were looking for a nickel producer. EV relies on nickel to keep producing batteries for their cars. With that being said
vale mines nickel in Brazil, Canada, Indonesia and New Caledonia making it the LARGEST producer of nickel. Vale also has joint-venture refineries in China, South Korea, Japan, the UK and Taiwan. These locations will help deliver nickel to the Tesla factories in North America, Berlin and China.
Important things to remember
$VALE is the largest nickel producer in the entire world
$VALE notified creditors on September 14th that it was paying off it’s $5 billion debt, suggesting a large deal leveling them an insane amount of capital.
$VALE’s trading volume is up 37% from it’s average and has bullish whale activity in the options chain.
Earlier this month, $VALE announced that they would be paying an extra dividend, on top of their regularly scheduled dividend, reinforcing the thesis of a strong balance sheet
Tesla and $VALE already have a history of being bidirectional business partners for over a year.
Conservative estimates reveal Tesla's growth plan leaves $VALE’s competitors ill equipped to deal with the demand for nickel Tesla needs to produce it's vehicles within five years.
This market is all about supply and demand and if Vale can supply the nickel needed a partnership with Tesla is eminent.
Technicals to watch for on 9/21/2020
Resistance: is at $11.82 & $12.12
Support is at $11.36 and $11.20
Vale retrace to be expectedVale has reached an area of very strong weekly (not shown) and daily resistance. Furthermore it has just broken and retested the upward trendline.
So consolidation and retrace can be expected.
Possible scenarios for rebuying:
ORANGE: Simply consolidation at the current levels before we continue up.
RED: Wee do a retrace to the 0.5 fib, which lines up nicely with a horizontal support.
GREEN: We do a retrace to the 0.618 fib, lining up with a very strong horizontal support.