Approaching Resistance: Vale

New York, April 16th ( - Shares of Vale SA (NYSE:VALE) are trading very close to calculated resistance at $23.98. The stock ended the trading session at just $23.85, which is near levels that make it difficult to buy or start a position.

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.

Vale's stock range is defined by its calculated support defined at $22.04 and by the resistance level at $23.98; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.

Traders don't have a clear entry point for Vale. However, as the stock pulls back towards $22.04 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $23.98 then traders will get an opportunity to enter the stock as it moves to a higher range.

Technical Scans

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