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Possible Bearish Inside Day Candle Pattern Detected for Vale (NASDAQ:VALE)

By David Diaz

SmarTrend's candlestick scanner has spotted a possible bearish inside day candle pattern in Vale (NASDAQ:VALE) based on the price action in the company's shares. Yesterday's price range of $5.53 and $5.65 is within the prior day's high and low of the day. This trading action often signifies indecision by bulls and bears to drive prices higher or lower and often implies a possible change in trend. Owners of Vale may want to consider a possible hedge in the event a pullback occurs. Look for confirmation in the next few trading days.

Vale (NASDAQ:VALE) is currently priced 4.3% above its average consensus analyst price target of $5.40. Vale shares have support at the 50-day moving average (MA) of $4.48 and additional support at the 200-day MA of $4.10.

Vale SA 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.

In the past 52 weeks, shares of Vale have traded between a low of $2.13 and a high of $9.14 and closed yesterday at $5.64, which is 165% above that low price. In the last five trading sessions, the 50-day moving average (MA) has climbed 3.7% while the 200-day MA has slid 0.2%.

SmarTrend recommended that subscribers consider buying shares of Vale on July 12th, 2016 as our proprietary SmarTrend analytics indicated a new Uptrend was in progress when shares hit $5.41. Since that recommendation, shares of Vale have risen 5.7%. We continue to monitor VALE for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: bearish am inside day candle

Ticker(s): VALE