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Valero’s 50-Day Average Moves Closer to Its 200-Day Average

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Mar. 27 2019, Updated 1:24 p.m. ET

Valero’s moving averages in past quarters

Valero Energy (VLO) stock has risen 13% in the current quarter. Now let’s look at Valero’s moving average trend in the current quarter. Before that, though, let’s briefly review how Valero’s moving averages have trended in the past few quarters.

In the second quarter of 2018, a stronger refining environment boosted Valero stock and its 50-day moving average. Valero’s 50-day moving average stood high above its 200-day moving average in the quarter, and the uptrend continued in the third quarter. However, in the fourth quarter, Valero stock and its 50-day moving average slumped. Valero’s 50-day moving average broke below its 200-day moving average in November 2018. Usually, when a short-term moving average breaks below a long-term moving average, it’s considered a technically bearish sign.

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Valero’s moving averages in the first quarter

In the current quarter, Valero stock has risen, leading to a 3% rise in its 50-day moving average. Thus, the gap between Valero’s 50-day moving average and its 200-day moving average has narrowed. Valero’s 50-day moving average, which stood 22% below its 200-day moving average in the quarter, now stands 14% below its 200-day moving average. This change is a positive sign, hinting at the possibility of a crossover.

In the same period, Valero stock has crossed above its 50-day moving average, indicating positivity in its movements.

Peers’ moving averages

The 50-day moving averages of Valero’s peers Marathon Petroleum (MPC) and Phillips 66 (PSX) stand 11% and 8% below their 200-day moving averages, respectively. Delek US Holdings’ (DK) 50-day moving average stands 18% below its 200-day moving average.

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