VALE runs into sellers again around 12.00
VALE S.A. American Depositary Shares Each Representing one (VALE) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, VALE finished the week -1.41% lower at 11.87 after edging lower $0.06 (-0.5%) today on low volume, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing below Thursday's low at 11.88, VALE S. A. confirmed its breakout through the previous session low after trading up to $0.11 below it intraday.
Daily Candlestick Chart (VALE as at Feb 14, 2020):
Friday's trading range has been $0.23 (1.92%), that's slightly below the last trading month's daily average range of $0.23. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for VALE.
After having been unable to move above 12.03 in the prior session, the share ran into sellers again around the same price level today, failing to move higher than 12.00. The last time this happened on January 10th, VALE actually gained 2.70% on the following trading day.
The stock shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. Its common bearish interpretation has been confirmed for VALE S. A.. Out of 350 times, VALE closed lower 49.71% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 51.14% with an average market move of 0.17%.