BRAZ - Vale: Rising Iron Ore Prices A Boon But Momentum Challenges Persist
2024-05-22 14:39:44 ET
Summary
- Iron ore prices have rebounded in Q2, benefiting Brazil-based Vale S.A., the largest producer of iron ore.
- Vale's Q1 net profit was hampered by weakness in commodity prices, but a resource rebound could boost earnings in the current quarter.
- Vale's valuation is compelling, but its technical chart shows caution, with key support at $11 and resistance at $15.
Resource commodity prices have been extremely strong so far in 2024. Much of the attention has been focused on base and industrial metals, like copper, but iron ore has rebounded from a tough start to the year. Perhaps the most highly correlated stock to iron ore is the Brazil-based Vale S.A. ( VALE ) Am ong the most risk-on and highly risky emerging-market stocks, shares are priced very cheaply while its technical chart shows a clear pattern that investors should monitor....
Vale: Rising Iron Ore Prices A Boon, But Momentum Challenges Persist