Trading Idea - Entry Levels for Vale

Published on Thursday, 09 September 2010 05:24 Written by Christopher Lynn

New York, September 9th (TradersHuddle.com) - Shares of Vale SA (NYSE:VALE) are trading very close to calculated support at $27.06 with current price action closing at just $27.43 places the stock price near levels where traders will start paying attention.

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 current stock range is defined by current calculated support defined at $27.06 and by the resistance level at $28.91, which should be used by traders planning their trades.

Traders wanting to establish a position should place close attention to Vale's price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $28.91 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.