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Valero Energy Corp. VLO-N (Friday’s close US$101.24) declined from US$126.98 to US$68.81 in 2018 (A-B) and then settled into a multiyear, bullish technical pattern known as an Inverse Head-and-Shoulders (solid lines).

The stock ran into resistance near US$84 during most of last year (dotted line); the recent rise above this level signalled a breakout from the Inverse Head-and-Shoulders pattern and the start of an uptrend toward higher targets (C).

Behaviour indicators, including the rising 40-week Moving Average (40wMA) and the rising trend-line (solid line), confirm the bullish status. There is good support near US$85; only a sustained decline below ±$80 would be negative.

Point & Figure measurements provide targets of US$99 and US$109. The large Inverse Head-and-Shoulders pattern (solid lines) supports higher targets.

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Monica Rizk is the senior Technical Analyst of Phases & Cycles Inc. (www.phases-cycles.com). Chart source: www.decisionplus.com

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