Tuesday, September 20, 2016

Valero



20160920

Valero is an issue that popped up on one of my queries - Major with low P/E

A quick gander seemed appropriate...

On the 20 year view, this issue has had quite a ride and appears to be towards the bottom of it's 20 year HVA #2 (HVA #1 is much further below)....

Zooming in on the 10 year, it appears that VLO is not only bouncing off the bottom of the 20 year HVA but also it's SMA 200.   This is a bull signal...



Zooming in closer at the 90 Day chart for a better view, we see not only how price bullishly crossed the 90D SMA 200, but also retested at $49 (the sign of well behaved price action), and proceeded long, presently at $55 (10% rally to date) with a historical level of $70 as a target. Because VLO is a refiner and a driller, this issue should not be as closely coupled to CL as would the producers....


Wondering if we missed the bus, it appears that we are at the HVA edge where price will either return to the mean, or escape and continue to rally...

Continue with due diligence - I'll report back again if I take a position or if something changes.