Valero near Key Resistance Area

Published on Tuesday, 27 July 2010 05:44 Written by Christopher Lynn

New York, July 27th (TradersHuddle.com) - Shares of Valero Energy Corporation (NYSE:VLO) are trading very close to calculated resistance at $18.20 with the current price action closing at just $17.56 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 $16.85 and by the resistance level at $18.20, 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 $16.85 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 $18.20 then traders will get an opportunity to enter Valero stock by establishing a position as the stock moves to a higher range.