Valero Close to Resistance

Published on Wednesday, 17 March 2010 08:20 Written by TradersHuddle Staff

New York, March 17th (TradersHuddle.com) - Shares of Valero Energy Corporation (NYSE:VLO) are trading very close to calculated resistance at $20.91 with the current price action closing at just $20.56 placing the stock near levels that make it difficult to buy.

Valero Energy Corporation (NYSE:VLO) is an independent petroleum refining and marketing company that owns and operates refineries in the United States, Canada, and Aruba. The Company produces conventional gasolines, distillates, jet fuel, asphalt, and a series of petrochemicals and lubricants.

Valero's current stock range is defined by current calculated support defined at $17.12 and by the resistance level at $20.91, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Valero, as the stock is well above support, however, as the stock pulls back towards $17.12 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $20.91 then traders will get an opportunity to enter Valero stock by establishing a position as the stock moves to a higher range.