In our previous report (April 1, 2022 – US$101.24) we identified a bullish technical formation known as an Inverse Head-and-Shoulders (solid lines) and the breakout from this pattern as the stock rallied above US$84 (dashed line). Valero Energy VLO-N (Friday’s close US$113.82) rose to a high of US$146.81 in June for a 45-per-cent gain in two months (A). It became extremely extended and was exceptionally far above its 40-week Moving Average (40wMA). The stock had a correction toward its Average and the rising trendline (solid line), where it found good support near US$95-US$100 (B). Recent price action suggests the resumption of the uptrend. Only a sustained decline ±US$100 would be negative.
Point & Figure measurements provide targets of US$145 and US$155. The large Inverse Head-and -Shoulders pattern (solid lines) supports higher targets
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Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart source: www.decisionplus.com
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Monica Rizk