$VLO possible deeper correction ahead?

$VLO possible deeper correction ahead?


October 2023


Alex Cole

$VLO has fallen out of its "Go" trend by painting an amber "Go Fish" bar.

We have seen a strong rise in price for $VLO since June, with a "Go" trend and a series of higher highs and higher lows. During that time, GoNoGo Oscillator has been supported by the zero line and we even saw a Max GoNoGo Squeeze broken to the upside before price hit the last higher high.  More recently, we saw a couple of Go Countertrend Correction Icons (red arrows) indicating that price would struggle to go higher in the short term.  Indeed, we saw price cool off and GoNoGo Trend paint more weaker aqua "Go" bars.  This caused GoNoGo Oscillator to fall to the zero line as momentum waned where it looked for support.  Ultimately, it found none and crashed through the zero line into negative territory with surging volume (dark blue oscillator color).  GoNoGo Trend at the same time paints a first amber "Go Fish" bar.  With momentum in negative territory, we will look to see if that amber "Go Fish" bar leads to a trend change and more destructive price action.