Chart of the Week: Valero Energy
It’s time for our chart of the week for April 1. We’re gonna take a look at energy name, gasoline refiner, Valero. VLO is the symbol. Let’s take a look at this stock. It’s been strong for the past few months. Obviously with oil prices up, this is going to be a big beneficiary of that big giant move in oil.
So, as you can see from the chart here, the stock has been making higher highs, higher lows. It’s created a really nice channel here of higher highs and higher lows. And we can see it’s kind of like right in the middle of the top end of the channel that we put together here. It means that it probably got a little upside to go before it pulls back in a bit, but it’s been spending most of its time in the middle of that channel and not testing too much at the lower end here. And that comes down to about $234 here. So if the stock does come back down a bit towards that level, it’s probably gonna be a good spot to buy it.
But I think buying the momentum, buying the trend, of a stock like this is really is going to pay off dividends here.
Even though money flow is down a little bit, we’ve seen on-balance volume pretty strong.
MACD is on a buy signal.
Relative strength has been pulling back down off of the 80 level, and every time it seems to pull back down below the 80 level, 75-80 level, it’s been a buy. So it’s pulling back down over here right now – probably a good spot to add Valero here.
We did see some good volume a couple of weeks ago to the upside.
And of course as the battle or the war continues in Iran and oil prices continue to rise, Valero, along with PSX (Philips 66) and even Marathon, are going to be big beneficiaries of the higher oil prices and higher prices at the gas pump too.
So take a look at Valero (VLO) for a stock play. I think it’s got some chance to get up to $275-280 in the interim here and possibly even $300 by the end of the year as long as oil prices stay up.
One more thing I wanted to let you guys know – we have some great resources at Explosive Options. They’re free. Doesn’t cost you anything.
Obviously chart of the week is one of those.
Daily Bites, which we bring to you Monday and Thursday every morning.
There’s a whole slew of ebooks – we just refreshed them on the website. Those are all free to download.
Educational webinars we have once a month. I’ve been putting great guests up there. We just had Christian Fromhertz on a couple of weeks ago. He was fantastic. Todd Gordon in February. We got Larry Tantarelli coming up in April.
The blogs that I write every week, trading tutorials, online mini courses, everything like that.
If you don’t want to spend any money and you want to learn a little about options, learn about trading, technical analysis, and here’s some fantastic people who trade alongside me and away from me.
Go the website and check it out.
Have a great day everyone, and I’ll see you guys next time.
