Will VALERO ENERGY CORP Break Out? A Technical Analysis Perspective.

Our stock screener has detected a potential breakout setup on VALERO ENERGY CORP (NYSE:VLO). This breakout pattern is observed when a stock consolidates following a strong upward movement. It's important to note that this pattern is based on technical analysis, and the actual breakout outcome is uncertain. However, it might be worth keeping an eye on NYSE:VLO.

In-Depth Technical Analysis of NYSE:VLO

ChartMill employs a sophisticated system to assign a Technical Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple technical indicators and properties.

Overall VLO gets a technical rating of 8 out of 10. Although VLO is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• Both the short term and long term trends are positive. This is a very positive sign.
• VLO is part of the Oil, Gas & Consumable Fuels industry. There are 215 other stocks in this industry. VLO outperforms 72% of them.
• VLO is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so VLO is lagging the market slightly.
• In the last month VLO has a been trading in the 134.39 - 147.43 range, which is quite wide. It is currently trading near the high of this range.
• When compared to the yearly performance of all other stocks, VLO outperforms 69% of them, which is more or less in line with the market.

Our latest full technical report of VLO contains the most current technical analsysis.

How do we evaluate the setup for NYSE:VLO?

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:VLO this score is currently 9:

VLO has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 145.28. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 138.45, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

How to trade NYSE:VLO?

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

Please note that this article should not be construed as trading advice. The information provided is solely based on automated technical analysis and serves to highlight technical observations. It is important to conduct your own analysis and make trading decisions based on your own judgment and responsibility.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.