An oil tanker is docked at the Valero Energy Corp. refinery at the Port of Corpus Christi, Texas.Eddie Seal/Bloomberg
From the high of $78.68 (U.S.) (A), Valero Energy Corp. declined to a low of $13.94 (B), rallied to $26.20 (C) and then settled into a large base (wedge pattern - dashed lines). The recent high of $31.12 (D) signalled the breakout from this base and the start of a new major up-leg toward higher targets. The current pullback toward the 40-week moving average (40wMA - E) should provide a good entry point. Only a decline below $23-$24 would reverse the current long-term up-side potential.
Point & Figure measurements provide an initial target of $34.
Ron Meisels is a contributor to the www.NA-marketletter.com website. Monica Rizk is the senior technical analyst for Phases & Cycles Inc. They may hold shares in companies profiled. Please see the site for a glossary.
Chart source: www.decisionplus.com