Vale Approaching its 200 Day

Published on Monday, 06 February 2012 08:16 Written by TradersHuddle Staff

New York, February 6th (TradersHuddle.com) - Shares of Vale SA (NYSE:VALE) closed the trading session at $26.61 near its 200 day moving average currently set at $27.20. Vale's price action is below this important level, which makes the stock difficult to buy, as there will certainly be resistance as it approaches its 200 day moving average.

Companhia Vale do Rio Doce (NYSE:VALE), through its subsidiaries, operates as a diversified metals and mining company worldwide. Vale produces and sells iron ore, pellets, manganese, alloys, gold, nickel, copper, kaolin, bauxite, alumina, aluminum, and potash. The Company is based in Brazil, where it owns and operates railroads and maritime terminals.

Latest price action range, defined by a peaks and troughs algorithm places calculated support at $24.04 and calculated resistance at $25.35. These levels are being closely watched by traders, as they provide great reference points for the latest price dynamics in Vale shares.

Traders should evaluate their trade if they want to establish a position on Vale given the resistance could materialize as the stock approaches the 200 day moving average. A trade might materialize as the stock manages to break this important level, as it could be used as support going forward, however until the break materializes, traders need to exercise patience. Other levels that traders will be evaluating are the ones defined by the peak and troughs algorithm that provides great price action reference points.