Based on good technical signals, VALERO ENERGY CORP is potentially setting up for a breakout.

Our stock screener has identified VALERO ENERGY CORP (NYSE:VLO) as a potential breakout candidate. This technical breakout setup pattern occurs when the stock consolidates after a strong uptrend. While the actual breakout is uncertain, it may be worth keeping an eye on NYSE:VLO.

Technical Analysis Observations

Every day, ChartMill assigns a Technical Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various technical indicators and properties.

We assign a technical rating of 7 out of 10 to VLO. VLO has been a medium performer in the overall market. Some doubts are observed in the medium time frame, but recent action was very positive.

• Both the short term and long term trends are positive. This is a very positive sign.
• VLO is one of the better performing stocks in the Oil, Gas & Consumable Fuels industry, it outperforms 71% of 217 stocks in the same industry.
• In the last month VLO has a been trading in the 122.57 - 139.31 range, which is quite wide. It is currently trading in the middle of this range where prices have been consolidating recently, this may present a good entry opportunity, but some resistance may be present above.
• Looking at the yearly performance, VLO did better than 85% of all other stocks. However, this relatively good performance is mostly due to a recent big move.
• VLO is currently trading in the middle of its 52 week range. The S&P500 Index however is trading in the upper part of its 52 week range, so VLO is lagging the market slightly.

Check the latest full technical report of VLO for a complete technical analysis.

How do we evaluate the setup for NYSE:VLO?

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NYSE:VLO exhibits a 9 setup rating, indicating its consolidation status in recent days and weeks.

Besides having an excellent technical rating, VLO also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is very little resistance above the current price. There is a support zone below the current price at 133.11, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

Trading setups like NYSE:VLO

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this zone.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

More breakout setups can be found in our Breakout screener.

Disclaimer

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.