Vale S.A. Continues to Deliver Strong Price Gains, Higher Targets Seen

 | Feb 15, 2018 | 10:08 AM EST
  • Comment
  • Print Print
  • Print
Stock quotes in this article:


Vale S.A. (ADR)  (VALE) rallied to a new high for the move up yesterday. Is there more gas in the tank to carry VALE still higher? Let's dig into the charts and indicators.
In this daily bar chart of VALE, below, we can see that VALE has nearly doubled from its May/June lows near $7.50. Prices successfully tested the flat to rising 200-day moving average line in November and we can see a similar test of the rising 50-day average line earlier this month.
The daily On-Balance-Volume (OBV) line has been rising since June and confirms the advance. Buyers of VALE have been more aggressive for months. The Moving Average Convergence Divergence (MACD) oscillator just crossed to the upside from above the zero line for an outright go long signal.
This weekly bar chart of VALE, below, shows that buyers of VALE, when it crossed above the 40-week moving average line, have made out very well. The 40-week average is still pointed up. The weekly OBV line has been going up the past two years and the MACD oscillator is in a bullish configuration.
In this Point and Figure chart of VALE, below, we have a longer-term potential price target of $19.60.
Bottom line: Stay long VALE and consider going long or adding to existing longs. $16.25 and the $19-$20 area are my upside price targets. Risk a close below $12.50 for now.

Columnist Conversations

Facebook had outstanding earnings and looks to continue upward, while HD is a strong breakout on volume and Ak...
Stock picking contests can be entertaining and can provide some interesting ideas but if you seriously want to...
Your Reality Check. Check out Real Money's Helene Meisler's latest podcast here. Subscribe to Meisler's T...
XBTUSD (Bitcoin) On 4/25 Bitcoin top ticked @ 9755.52 and then FELL. Our first short term support @ 8990 was...



News Breaks

Powered by
Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.