Score 7.5 (out of 10): VALE SA-SP ADR sets up for +8.9% rally in 2 weeks

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What’s Going On Here?

Vale S.A., is a Brazilian multinational corporation engaged in metals and mining and one of the largest logistics operators in Brazil.

Why Now?

VALE SA-SP ADR has triggered a new high volatility signal (3 month). During similar occasions, VALE SA-SP ADR shares had a median return of +8.9%, over the following 2 weeks – based on 10 historical occasions with 9 of those showing positive returns (90%). This buy signal for VALE SA-SP ADR received a high score of 7.5 (out of 10). This insight was generated on 2022-July-22 with last price of 12.59.

What’s This Company About?

VALE SA-SP ADR is in the Metal-Iron business. Based on the last 2 years’ risk/return profile, this asset is seen as Moderate Risk. Ticker symbol: VALE3 BZ.

What’s My Risk / Reward and Time Horizon?

We found 2 weeks to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 13.71 (+8.9%) has been reached. Based on VALE SA-SP ADR’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 11.79 (last price at 12.59), which is equivalent to a -6.4% decline.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ under (2), etc.

Previous episodes:

20.4% (May-2022), 12.8% (March-2022), 2.2% (December-2021), 18.2% (May-2020), -20.3% (March-2020), 8.2% (March-2019), 8.5% (December- 2018), 5.7% (October-2018), 20.9% (April-2016), 9.2% (February-2016).

Historical Chart:

Summary:

NameVALE SA-SP ADR
ViewUp
Star (1 to 10)7.5
Target8.9%
Time2 weeks
Hit Rate90%

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