Vale SA produces and sells iron ore, pellets, manganese, alloys, gold, nickel, copper, kaolin, bauxite, alumina, aluminum, and potash. The Company is based in Brazil, where it owns and operates railroads and maritime terminals.

The world’s largest iron-ore producer sold 30-year bonds for the first time in three years and plans to increase provisions for payment of government royalties as global mining companies face rising costs and declining prices. Analysts downgraded earnings per share estimates in the last months, but the share is became to very interesting price. In fact is trading with important discount compared its peer.

Technically the share is in bearish trend on all horizon of time. We suggest attention for the moment, if the share will close the week above BRL 33, this level could be technically a good point of entry. In this case a long position is suggested, in order to aim BRL 38 with a stop loss BRL 31.8.