A couple of weeks ago we observed that Valero Energy (VLO) was going to potentially break above a falling channel, and this is exactly what materialized. Valero Energy (VLO) Daily Chart(click to enlarge)The Breakout:- It took a few tries, but we can see that price action eventually broke above the falling channel resistance.- The fact that price was able to anchor above 64.00 was a good clue that bulls were winning this battle. - Now, with the breakout, we have a couple of projections. - 1. Target: Before the prevailing trend before the channel was bullish, we can anticipate at least upside towards the 2017 high at 71.40. - 2. If there is a pullback, we should anticipate support around 66. I think price shouldn't go below 65 in a bullish outlook, and if it goes below 63, we might be looking at a bearish scenario.