Is Valero Energy Setting Up for a Big Move?
June 28, 2021 3 min read  This story originally appeared on StockNews    An ascending triangle pattern has formed in the chart of Valero Energy Corp. (VLO). The stock recently hit a level of resistance and could again soon. Read more to learn how to take advantage of this trading opportunity. Valero Energy Corp. (VLO) is one of the largest independent refiners in the United States. It operates 14 refineries with a total throughput capacity of 3.2 million barrels a day in the United States, Canada, and the United Kingdom. The majority of the companys refining plants are in the Gulf coast where it has easy access to the export facilities. This has helped VLO expand its export volumes over the last few years. The firm is also set to benefit from a new standard set by the International Maritime Organization where the proportion of sulfur in marine fuel has declined drastically, which boosts demand for VLOs distillate fuels. As of the most recent quarter, the company had $17.6 billion in cash compared with only $734 million in short-term debt. However, its profit margin is negative. Over the past year, sales are down 40%, but analysts forecast revenue to jump 112.4% year over year in the current quarter. The stock appears quite overvalued with a forward P/E of 105.26. It has shown positive long-term momentum since November, with mixed short-term results as shown in the chart below. Click Here to Read the Greatest Trading Book Ever Written  Take a look at the 1-year chart of VLO below with the added notations:  Chart of VLO provided by TradingView  While climbing a rough trendline of support (green), VLO has also formed an important level of resistance at $84 (red), thus creating an ascending triangle pattern. The stock just hit the resistance last month but could now be making another run at that level. At some point, either $84 or the trendline support will break. A long trade could be entered on a break above $84 with a protective stop placed under the point of entry. I have explored virtually every flavor of technical analysis and chart pattern known to mankind. The sad fact is that the vast majority of them dont work at all. That is why I recently put together this special report to help investors focus on the only 5 chart patterns that matterthe ones that lead to the most timely and profitable stock trades. Click below to get your copy now! 5 WINNING Stock Chart Patterns  Have a good trading day! Good luck! Christian Tharp, CMT  @cmtstockcoach  VLO shares were trading at $79.54 per share on Monday morning, down $2.55 (-3.11%). Year-to-date, VLO has gained 44.58%, versus a 14.72% rise in the benchmark S&P 500 index during the same period. About the Author: Christian Tharp  I am an expert stock market coach having helped over 4000 beginner and advanced traders & investors from around the world take control of their financial futures. I also write stock market related articles for the Adam Mesh Trading Group and Yolo Publishing. More... The postappeared first on