Vale SA ADR (VALE) is a leading mining and exploration company that primarily operates out of Brazil and other countries in South America. The stock recently topped out on July 29th, 2021 at $23.14 a share. Since that high pivot, the shares have declined sharply and currently trade around $19.50 a share. The stock has now broken below its 50 and 100-day moving averages putting it in a weak technical position on the charts. This formation usually indicates lower share prices in the near term.
Vale SA ADR (VALE) stock will have excellent chart support around the $16.50 area. This key support level is where the stock has a major retrace level from its 2020 lows to its recent top. It is also a level where the stock broke out of a 3-month base back in late March 2021. Often, stocks will be defended by the institutional crowd when they retest their prior breakout points. The $16.50 level should present a very solid long-side trade opportunity.
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