On April 1, 2022 (US$101.24), we identified the start of an uptrend. Valero Energy VLO-N reached a high of US$146.81 in June 2022– an appreciation of 45% in two months (A). In September 2022 (US$113.82), we provided targets of US$145 and US$155; the stock rallied to a new high of US$152.15 in January 2023 (B).
From mid-2022 to mid-March of this year, Valero Energy remained within a wide horizontal trading range mostly between US$100 and US$150 (dashed lines). The subsequent rise above the top of this range signaled a breakout and the start of a new uptrend toward higher targets (C). Valero Energy was quite overbought in April and has since pulled back for a better entry level (D). A rise above US$160-165 would suggest the resumption of the uptrend.
There is good support near US$140-145; only a sustained decline below this level would be negative.
Point & Figure measurements provide targets of US$190 and US$210. Higher targets are visible.
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Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart source: www.decisionplus.com