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JimVanMeerten (62.12)

Valero is a speculative energy play

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October 07, 2011 – Comments (0) | RELATED TICKERS: VLO

COMPLETE ARTICLE AND MORE GRAPHS

Energy is a highly followed industry and Valero Energy (VLO) is a highly followed petroleum refiner.  Despite recent weakness in oil prices, overall the energy sector has had a very good year.  After a recent dip Valero's price is starting to recover as revealed in this hourly trading chart for the past month provided by Barchart shows:

Barchart technical indicators:

1 - Barchart's technical indicators are based on short term price movement between 7 days and 6 months.  Lately the sell signals have begun to weaken as the stock's price seems to be turning upward

2 - 48% Barchart overall technical sell signal that is beginning to weaken

3 - Trend Spotter technical sell signal - also beginning to weaken36.85% off its one year high

4 - Relative Strength Index is 47.24 and rising

5 - Barchart computes a technical support level at 19.12

6 - Recently traded at 19.55 which is below its 50 day moving average of 20.85

Summary:  Valero (VLO) and the rest of the oil and refining stocks have taken a market hit lately.  Although the company seems to be implementing all the right changes to improve the bottom line, in the past this has been an extremely hard stock to accurately predict earnings.  I do see a change in price momentum and would take advantage of that only as a speculative position with the appropriate stop losses in place.

Jim Van Meerten is a Marketocracy Master

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