VLO dominated by bulls lifting the market higher throughout the day
Valero Energy Corporation (VLO) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, VLO ended the month -11.73% lower at 58.82 after gaining $1.87 (3.28%) today, significantly outperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 58.19, the share confirmed its breakout through the previous session high after trading up to $0.91 above it intraday.
Daily Candlestick Chart (VLO as at Jun 30, 2020):
Tuesday's trading range has been $3.33 (5.91%), that's slightly above the last trading month's daily average range of $3.00. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for VLO.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Notwithstanding a weak opening the stock managed to close above the prior day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on March 19th, VLO gained 3.34% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 60.59 (R1). The market found buyers again today around 55.77 for the third trading day in a row after having found demand at 56.06 in the previous session and at 55.66 two days ago.
Valero Energy shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could accelerate should prices move below the close-by swing low at 55.66 where further sell stops might get triggered.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior two Lows" stand out. Its common bullish interpretation has been confirmed for Valero Energy. Out of 110 times, VLO closed higher 57.27% 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 55.45% with an average market move of 1.26%.