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

 | Feb 15, 2018 | 10:08 AM EST
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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.

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