VLO may be an undervalued stock but as the crackspread stays on the worst level for a decade the profit margin for refiners is in jeopardy. Currently we are locked in a descending trading channel and the upside is around 20, which we likely will see. The Seq daily 13 set a low for now as we are in a zigzag consolidation for now. The interesting part is that crude is about to make a low soon just below 50 and has to go up to 80 thereafter which might trigger a breakout to the upside bringing VLO back up to 25.The statistic effect around TG is overwhelmingly positive and as we have a New Moon on Friday in Sagitarius which is basically a positive for stocks and the window dressing makes it a sealed deal we stay in a stronger bias as expected for this week. Do not get trapped though as we have to face another selling wave in Dec as many charts still require a trough to complete this downleg.
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