Is Valero Closing in to Resistance?
Published on Monday, 24 December 2012 08:12 Written by TradersHuddle Wire
New York, December 24th (TradersHuddle.com) - Shares of Valero Energy Corporation (NYSE:VLO) are trading very close to calculated resistance at $34.50. The stock ended the trading session at just $34.14, which is near levels that make it difficult to buy or start a position.
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 stock range is defined by its calculated support defined at $28.56 and by the resistance level at $34.50; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.
Traders don't have a clear entry point for Valero. However, as the stock pulls back towards $28.56 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $34.50 then traders will get an opportunity to enter the stock as it moves to a higher range.