VLO pushes through key technical resistance level
Valero Energy Corporation (VLO) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, VLO finished Thursday at 45.60 gaining $5.97 (15.06%), notably outperforming the S&P 500 (6.24%). Closing above Wednesday's high at 42.49, the market confirmed its breakout through the prior session high after trading up to $4.65 above it intraday.
Daily Candlestick Chart (VLO as at Mar 26, 2020):
Thursday's trading range has been $7.00 (17.1%), that's above the last trading month's daily average range of $5.90. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for VLO.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 41.18 (now S1), which is likely to act as support going forward. The last time this happened on March 6th, VLO actually lost -7.43% on the following trading day.
While the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Valero Energy. Out of 173 times, VLO closed higher 55.49% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 56.07% with an average market move of 0.48%.