Valero Breaking Out?

Published on Friday, 03 September 2010 07:08 Written by Christian Paolinetti

New York, September 3rd (TradersHuddle.com) - Shares of Valero Energy Corporation (NYSE:VLO) closed the trading session at $16.64 just above calculated resistance at $16.30 effectively breaking out, grabbing the attention of momentum traders, which could eventually push the stock to different trading range

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 was trading in a well defined range with support at $15.49 and resistance at $16.30, given that this range was broken traders will be closely monitoring the stock?s price action for clues of direction.

From a technical perspective it can be expected that previous resistance becomes support, as the new range gets defined, however, given that Valero's stock is still near the broken resistance level, traders will be focusing on $16.30 to see if the stock holds the breakout without rolling over.