Nearest Resistance: $14
Nearest Support: $13.25
Catalyst: Commodity Bounce
The last year has been rough for Brazilian mining company Vale (VALE - Get Report). Shares have slid more than 29% in the trailing 12 months. But shares could be starting to turn over in 2014. Today, for instance, Vale is up 2.7% on strength in the commodities that the firm mines, a welcome push on a day when most stocks are getting pummeled. And now, an inverse head and shoulders pattern points to even more upside in VALE, as long as shares can catch a bid above $14.
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$14 is the breakout level that we'll want to see get taken out by increasingly eager buyers before this trade becomes buyable. After that happens, keep a tight stop in place.