Vale and Usiminas stocks slide as technical indicators signal further declines

Vale (VALE3) shares continued their corrective move, falling 1.79% to R$ 72.58 and trading below the 9‑, 21‑ and 200‑day moving averages. The daily RSI is near the oversold region (31.4), and analysts note that a rebound would require stronger buying volume and a recovery of the moving averages. The primary support range is identified between R$ 71.93 and R$ 64.23, with further downside targets at R$ 59.12, R$ 57.58 and lower.

Usiminas (USIM5) has lost about R$ 4 billion in market value since its June 2 peak, a 30% drop. Bradesco BBI cut the target price from R$ 10 to R$ 8.50 and kept a neutral rating, citing weaker steel prices, rising input costs and higher import competition that could depress EBITDA in the second half of 2026. Some analysts point to a relatively attractive valuation, solid cash position and a low net‑debt‑to‑EBITDA ratio, but overall sentiment remains cautious.

Both companies face a challenging environment in Brazil’s steel and mining sectors, with technical indicators and market expectations suggesting further pressure on their share prices.