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Following up on the Valero Energy (VLO) Bullish Breakout

Recently, we saw VLO break above a consolidation channel, signaling bullish continuation. Since then, price action has been consolidating, but does show some promise that price action will extend higher after the early-July breakout.

VLO Daily Chart

(click to enlarge)

Breakout Confirmation:
- So far, there hasn't been a strong extension after the breakout as price trades under 69. 
- But notice that price was retreating early in July but found support where the previous resistance was, including the channel resistance. This is a subtle confirmation of the bullish breakout.
- As noted in the previous update, VLO now has the 2017 high of 71.40 in sight.
Failure:
- If price breaks below 66 on the other hand, we should expect further consolidation, maybe a sideways one instead of the bearish one we have seen so far in 2017 in the form of a falling channel.