Shares of Valero Energy Corp. are trading at new ’21 highs today. The stock is up just over 2% as it extends Tuesday’s trend line breakout. The energy sector has been on fire of late and it now appears VLO is heading higher as well. We expect more upside in the near term and regard the stock as a low risk buy near current levels.
Despite trading at new ’21 highs VLO is far from overbought(daily/MACD). Layers of support are now in place($82.00-$82.50=multi week May highs). Upside trade has been running fairly heavy since the start of May.
The 2020 high($98.05) is a logical upside target.
On the downside a close back below $78.00 would violate last week’s low=warning sign.
We are long VLO in our Tactical Opportunity Portfolio.