Lots of things are happening on the chart with oil refiner Valero Energy.
1) VLO had a Golden Cross pattern in late October, with its 50-day SMA rising above the 200-day SMA. 2) In recent weeks, it pulled back to find support at its old resistance zone between $92 and $94. That goes back to October 2018 and April 2019. 3) VLO has also remained near its 50-day SMA, creating a setup similar to Nike early last month.
Energy stocks in general have shown positive relative strength lately as oil tries to push higher. There are a few positive forces at work: OPEC extending production cuts, calming of trade tensions between the U.S. and China, a better economic situation in Europe and low production in the U.S.
Refiners have been popular trading vehicles for energy in the past. As long as VLO holds this support zone in the low-to-mid 90s, will traders get interested in it again?