With Vale’s stock chart finally showing progress, should we expect a breakout?
The post With Vale’s stock chart finally showing progress, should we expect a breakout? appeared on BitcoinEthereumNews.com.
Vale stock has broken above significant topline resistance on daily chart over past week. Iron ore prices are holding steady above $100 as China regains economic clout. Vale stock is nearing a five-year descending trendline with a breakout possible. Bringing Capanema mine online will give Vale an additional 15 million tonnes of iron ore production. Brazil’s Vale (VALE), often hailed as the world’s largest iron ore and nickel mining company, might be beginning to turn the page on a five-year downtrend in its share price. After trending lower due to falling iron ore prices, political uncertainty, and a drawn-out legal battle following lawsuits stemming from several catastrophic tailing dam ruptures, bulls are beginning to take the upside narrative seriously. Vale was able to come to financial terms with the Brazilian government over the dam ruptures last year and has recently made a large offer to settle litigation in the UK involving the same issue. And earlier this month, Vale announced that it would reopen the Capanema iron ore mine that it had mothballed for 22 years. That mine redevelopment project will cost over $12 billion but will raise Vale’s output by about 15 million tonnes per year. This should allow Vale to achieve its goal of 340 million to 360 million annual iron ore production. Vale stock forecast and technical chart The Vale stock price is hovering just below the upper trendline of a five-year, descending resistance band, and recent market dynamics point to a coming breakout. The Vale stock price closed at $10.83 on Monday and has risen in Tuesday’s premarket, which makes it the highest share price in about nine months. A break above the five-year top trend line, circa $11.05, could give bulls the energy to push VALE up to the year-ago resistance mark at $12 or…
