The Oil Stock That Just Hit A Wall

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[music]
Hello everybody, Drew Dosek here with
Verified Investing. Today we've got some
stocks to go over, break down some TA,
potentially teach you a few things, and
set you up for another trade in the
future. So, let's jump into these
charts. As I said, they will be on
stocks, but this one is going to focus
on a commodity that has been ripping up
on the charts, and that is off of oil.
But this stock we're looking at is on
Valero. Now, let me back out to show you
really how I've been drawing uh the
progress and monitoring the progress
technically on this chart. So, you can
see here I've got two parallels. The
first one's the blue parallel started
all the way back in October of 2020 that
contained price all the way up here
until March of this year. And if you
guys recall, right around the end of
February, beginning of March, the United
States invaded Venezuela and then we
attacked Iran. And then obviously with
the big Iran attack, there has been an
explosion as far as increase in cost of
oil. But Valero has staged itself to
really benefit as their refineries can
already accommodate the crude coming
from Venezuela. Much that we already um
as far as the United States is already
um uh acquired. So VLOO has just
continued to push up on the charts. Now
what I did to gauge where this next
level of resistance would be, I started
a parallel and I drew it within the
price action on the previous parallel
after price had broken out, retraced and
bounced much like I go through on
trading the close. And guys, I go
through that literally every single week
because it happens on so many charts and
it can provide great insight if you're
shorting the stock or if you're longing
the stock to hang in there because it's
going to continue further. Now, if
you're short and then price action
bounces at this area, get the heck out
of that position and then re-evaluate
for another potential entry. Anyway,
back to the analysis on this bounce
that's occurring. So, we bounced through
that parallel and then retraced and has
since come back up. Even notice here on
the 50% area, we paused, retraced, broke
out, retraced again, and then bounced.
Much like I described, guys, these
happen over and over again, illustrating
we were going higher. Now, why has price
put on the brakes right here over the
last four trading days? Well, it's
because of this inclining parallel
channel. Now, it didn't even get to
$400. One could argue, hey, Drew, it's
it's stalling out there because of the
$400 whole round number. You could be
right, but price didn't pierce that area
mainly because it couldn't get there
because of this resistance. And since
we're seeing price come back down now,
uh, a positive for price to come come
down further on VLOO is if we put a
daily close lower than this low pivot
that occurred on September 9th, which is
at $37,959.
We have a daily close underneath that
level, that increases probabilities vo
to come down to the next level right
around $350 as the next key level of
near-term support. But look at the RSI,
guys. near overbought just coming down
under 70 right now under 68. This too by
the way the RSI is the relative strength
indicators located at the bottom of the
screen that you see when I flip to the
weekly look at we're at 75.76.
Flip over to the monthly we're at 86.49
49 both monthly and weekly still
remaining overbought near-term still
implying that we do need to see further
downside on the chart of via low that
should uh correspond sooner rather than
later on that chart. Next up on the
opposite end of the spectrum we've got
roadblocks looking like it is about to
break out of its chart. You can see here
RBLX on the daily time frame has been
contained within this declining parallel
channel for the majority of this year.
today's price action gapping up over
this upper range of the parallel channel
and doing a continuation push. Very nice
push. Now, tomorrow for the bulls, you
want to see price get above today's
candle and close. That allows any sort
of pullback as a buying opportunity as
this uh upper range of the parallel
channel flips from resistance into
support to help price continue with this
breakout up to the next key resistance
of 6142. There will be resistance here
at these pivot tops as well. Right
around $58. So this 58 to $61.50
is the next key resistance zone. One
that could pull price back and allow a
buying opportunity for anyone else that
has missed this near-term move on
Roblox. Next up into Meta. Meta also
trying to get a potential near-term
breakout underway. Now let's rewind the
clock to see and understand where we're
at on this chart. We had Meta mainly
contained in this inclining parallel
since December of 2023. We've had price
break this range in March of this year
and really tried to get back in, got
rejected, tried to get back in, got
rejected. Now we're making the third
attempt to try to get back in and we are
met with a lot of resistance derived
from this declining trend line. You see
here on the chart back from September
18th connected over to major pivot here,
the next major pivot uh back on July
15th. And you can see price over the
last three days has moved up into that
line and gotten rejected. Moved up into
that line, gotten rejected. Today so far
has some staying power. Now for the
bulls, you want to see price close above
$663.
If it can do that, then we would be
putting in a daily close above this
candle with the opportunity to continue
higher tomorrow and secure this
near-term breakout. If we're able to do
that, look at what can occur. Because
you see here the last three trading days
we didn't secure and confirm into the
parallel. We had one day in then the
next two were outside to the bottom. If
we have uh two consecutive pushes higher
and inside the parallel and above this
declining trend line any pullbacks will
be uh caught by this cradle of support
like an X marks the spot right here at
$658.75.
So, you want to see if you're bull on
Meta, get a couple more days put
together, pushing higher, which could
create a fantastic buying opportunity in
the near term. Lastly, guys, we got
Apple moving up on the chart while most
of tech has been under pressure today.
Now, Apple's not up much. It's up 68%,
but what it's showing is relative
strength moving up on the chart. Now, we
clearly have a daily topping tail here
on July 29th. The high of that topping
tail, $34,4457.
looks like it's going to be the
destination in the near term for Apple.
As long as the relative strength remains
in this stock, looks like we're going to
have a meet for a serious level of
contention with the previous all-time
highs. All right, guys. Uh that wraps up
today's video on stocks. Thank you so
much for tuning in and watching. Guys,
we've got a lot of free content here
available for you. So, make yourself
comfortable, enjoy a couple more videos,
gather some TA, set yourself up for your
next uh winning trade on the horizon.
Thank you again for watching. My name is
Drew Dosk with Verified Investing and
we'll see you right back here on the
charts next time. Take care, folks.