Valero Breaks Downtrend as Reopening Trade Continues
The reopening trade remains in full swing as buyers target cyclical companies with low valuations. Valero Energy could be a name to watch.
The oil-refinery stock has a few interesting chart patterns. First is the downward-sloping trend line in place since early 2020. VLO broke it in November and has remained above it since.
Meanwhile, its 50-day simple moving average (SMA) is about to rise above the 200-day SMA – a looming golden cross chart pattern.
Third, the current price zone between $59 and $60 has a lot of historical importance. It was resistance in May 2014, then support in December 2016 and June 2017. The price area was relevant again in May and July of 2020.
Next, MACD and the 200-day SMA are both rising. (This chart features our MA speed custom script.)
Finally, VLO has squeezed into a tight price range as it fights $60. Notice how Bollinger Band Width is the narrowest since early September.
Taken together, these patterns could suggest VLO has spent weeks breaking its longer-term downtrend. It’s consolidated for a month, so now could be the time for more lasting swing to the upside.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
The oil-refinery stock has a few interesting chart patterns. First is the downward-sloping trend line in place since early 2020. VLO broke it in November and has remained above it since.
Meanwhile, its 50-day simple moving average (SMA) is about to rise above the 200-day SMA – a looming golden cross chart pattern.
Third, the current price zone between $59 and $60 has a lot of historical importance. It was resistance in May 2014, then support in December 2016 and June 2017. The price area was relevant again in May and July of 2020.
Next, MACD and the 200-day SMA are both rising. (This chart features our MA speed custom script.)
Finally, VLO has squeezed into a tight price range as it fights $60. Notice how Bollinger Band Width is the narrowest since early September.
Taken together, these patterns could suggest VLO has spent weeks breaking its longer-term downtrend. It’s consolidated for a month, so now could be the time for more lasting swing to the upside.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
