Valero in Play

I don't normally post a lot of intraday charts here, but the Valero Energy (VLO) chart appears to have a nice potential for a big later-day move here, even with the market struggling to pick a direction.

On the 5-min chart, there is a nice cup-and-handle pattern evident, which would be a continuation off the lows from yesterday. A move over $39 should trigger a spike up to $39.60 by the day's end or into early tomorrow. I would prefer to play it just on the day. A move below $39.60 would invalidate the pattern and would result in a stop out for me from the long side. The reward outweighs the risk by a factor of 3-2, which is acceptable on an intraday standard. Often I prefer 2-1 or 3-1 when I can find it, but this is a pattern I've played enough to feel comfortable with a 3-2 level....176 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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