Companhia Vale do Rio Doce Is Moving Lower

Companhia Vale do Rio Doce (RIO), the Brazil-based metals and mining conglomerate, is down from its all-time high after completing four upside stages since mid 2004.

Click on the chart to see a larger image and note the possible double top, which with the steep phase 4 upside is signaling a strong possibility of further price weakness. The red-dashed line represents a hypothetical downside price path.

Be careful with this stock.

Related Articles:

Companhia Vale do Rio Doce Trades at All-time High
Price Patterns - A Double Top Signals a Downside
Price Patterns - Support Levels May Constrain Price Downsides

Posted November 21, 2007.