Vale Displays Entry Points
Mining and metals company Vale (VALE) is one of many whose stock price is tied to economic activity in China, and comparing its weekly chart to a chart of the Shanghai Stock Exchange Composite Index (SSEC) shows the correlation.Vale/SSEC Source: StockCharts.com View Chart » View in New Window »
The index chart is one that I have used several times in the past to illustrate the measured moves that have followed breakdowns in a series of large symmetrical triangles. The low this month touched the target level projected by the most recent pattern breakdown (red triangle) in July, and the bounce that followed has retested the downtrend line defined by recent highs. VALE has also traded under well-defined resistance over the last five months, but the price action looks more like an attempt to form a base rather than a bearish continuation pattern....249 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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