July 24 Chart of the Day - Valero

Precision oriented price action technical analysis by far provides the best edges and most setups for traders and investors across the markets so that's what we use for the basis of our reviews

Valero Energy Corporation (VLO) is a Texas based fuels producer mostly involved in manufacturing and marketing transportation fuels and other related products.

The company reports earnings before market open on Thursday July 25 so we wanted to review their chart from a price action technical analysis perspective.

We have featured over 250 Charts of the Day since May 2023 and teach Price Action Trading for FREE  to traders who join our Highly Rated Trade Room.

Monthly Chart 

On the monthly chart we can see that after setting its $184.79 all time high (ATH) back in April 2024 price is falling in a not so surprising fashion searching for a  bottom.

The bulls have yet to step in with any lasting conviction.

We also noticed a change control zone roughly between $120 and $125 (long gray rectangle).

Change control zones are one of the five price action tools we teach when charting anything.  By definition, they are an area that represents where neither the bulls nor bears are in charge.  Price can slash though the zone with seemingly reckless abandon, price can respect the top or bottom from outside it or within it.  Or, price can trade aimlessly sideways within it.  When price breaks away from the zone it can often get drawn back to it like a magnet. And in this case we see all of the above are true.

Weekly Chart

 
On the weekly chart we can see with much more clarity the fall from ATHs and where price briefly shot up over $180 then reversed starting a downward series of lower highs and lower lows..

Trading around $148 earlier today price has been attempting to find a definitive bottom but has yet to prove it so far by not producing a series of higher highs and higher lows.

The market is implying about a $5.53 move in either direction as marked on the weekly chart by this Friday July 26.  Share price has risen during the week of earnings 5 of the last 8 quarters.

Could earnings later this week be the catalyst that definitively sets the bottom to raise price firmly back to the upside or will it continue falling?

Only time will tell for sure what price will do next...

We've layered in traditional Fibonacci levels as well as support/resistance and trend to help identify potential price levels of interest and/or future price targets.

Armed with precision oriented charts like these both traders and investors can formulate their respective plans.

So what's next?