Published on Tuesday, 05 March 2013 09:20 Written by TradersHuddle Wire

New York, March 5th (TradersHuddle.com) - Vale SA (NYSE:VALE) closed the trading session at $18.02, near its 200 day moving average set at $18.73. Vale's stock action is below this level, which makes the stock difficult to be bought, as it will face 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, placed calculated support at $17.78 and resistance at $19.32. Traders should closely monitor these levels, as they provide great reference points for the latest price action in Vale.

If traders want to establish a position on Vale, given that resistance could materialize as the stock approaches its 200 day moving average, a trade might materialize as the stock manages to break this important level. After the breakout, the 200 day moving average could be used as support going forward. However, until the break materializes, traders need to exercise patience.