Valero Approaching its 200 Day

Published on Thursday, 19 January 2012 07:24 Written by TradersHuddle Staff

New York, January 19th (TradersHuddle.com) - Shares of Valero Energy Corporation (NYSE:VLO) closed the trading session at $23.05 near its 200 day moving average currently set at $23.58. Valero's price action is below this important level, which makes the stock difficult to buy, as there will certainly be resistance as it approaches its 200 day moving average.

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.

Latest price action range, defined by a peaks and troughs algorithm places calculated support at $19.12 and calculated resistance at $21.42. These levels are being closely watched by traders, as they provide great reference points for the latest price dynamics in Valero shares.

Traders should evaluate their trade if they want to establish a position on Valero given the resistance could materialize as the stock approaches the 200 day moving average. A trade might materialize as the stock manages to break this important level, as it could be used as support going forward, however until the break materializes, traders need to exercise patience. Other levels that traders will be evaluating are the ones defined by the peak and troughs algorithm that provides great price action reference points.