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.