$VLO - Valero hitting 40 year high
A Gann analysis revisited
Introduction
Some years ago I bought $VLO- Valero a quality stock in the energy section with a good reliable dividend. My portfolio had to endure the tumble on the COVID crisis in 2020 but I kept faith in the stock until recently when the stock on June 8th 2022 went parabolic and was approaching a 40 year high since IPO and a 15 year high from 2007 crest.
On June 7th 2022 I tweeted a high for now was set:
I sold my stock based on the analysis on the 7th June as I instinctively knew it would be difficult to sell at the alternative calculated price, as often I have seen these prices made pre-market while we all are still asleep.
My gut feeling proofed to be right as the stock made a pre-market high on June 8th 2022 and squared out only 7 cents higher than my target of $147.66 in 14766 calendar days.
Currently, the stock is trading at $112.44. Well below the 40 year high. As this stock was trading at a 0.01 per day it will take 6-7 months from now before this stock will hit the $150. But this is not impossible.
In his stock market course W.D. Gann mentioned:
The important yearly cycles are 1,2,3,5,7,9,10,12,14,15,18,20,21,22.5,24,25,27,28, 30,40,45,49,56,60,84 and 90 which is the Great Cycle. We divide the cycles into 1/2 which is the most important, and also into the periods of 1/8, 1/3 and 2/3, and watch these proportionate parts of the cycles for a change in trend.
In the experience of W.D. Gann 15 and 40 years are important cycles, but he also mentioned to watch the harmonics. So, Valero may also be on a 42 year cycle, which is an harmonic of the 84 year Gann Master cycle.
Also from a fundamental point of view with inflation soaring and energy prices going trough the roof there is a case to make this stock will may still go higher after a healthy correction.
Although enjoying time-off I could not resist sharing my further thoughts on this with my paid subscribers in below post. During my time-off, billing is off (paused) until I resume work at the end of this month. P.S.: I will not accept new paid subscribers during this time.