Vale S.A.

One of the most actively traded stocks in the commodity sector over the past several months has been Vale S.A (VALE). The large-cap Brazilian mining company is one of the barometers of the state of the worldwide mining industry, and as you can see below, the chart pattern is nearly identical to that of Alcoa shown above. The recent bullish crossover between the 50-day and 200-day moving averages signals to traders the reversal in the long-term downtrend. Based on the current position of the price relative to these key levels, the recent retracement should be viewed as a buying opportunity. From a risk management perspective, stop-loss orders will likely be set directly below the long-term average ($4.04). Given this chart, traders will be risking several cents for the possibility of earning dollars. (For more, see: Pricing Collapse: Time To Buy The Iron Ore Majors?)

Read more: 3 Commodity Stocks Poised to Pop (VALE, AU) | Investopedia http://www.investopedia.com/stock-analysis/cotd/051016/3-commodity-stocks-poised-pop-vale-au-vale-au-aa.aspx#ixzz48qMJ3uEy 
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