I just got back from a wonderful night at the All Star Game with my son. It was a great game if you are an American League fan. The excitement in the stadium was palpable. But more than anything else it was a a great father-son bonding experience. We had a blast.
With all the driving I have not been glued to the screen and it has been a bit harder to write. But I did notice that 3 refining company stocks that are on my broader watchlist this week are pulling back, possibly ready to give a new entry signal. Maybe it was also the gasoline that got me thinking.
Tesoro (NYSE:TSO)
Tesoro had broken above a long consolidation box to end last week, and was out of the Bollinger Bands®. After a long consolidation or base break, it can be expected to rise for some time, but often retests the break out first. The saying goes, ‘the longer the base, the higher it goes into space’. Watch a retest of the box and reversal back higher as an entry signal.
Phillips 66 (NYSE:PSX)
Phillips 66 has been moving higher in a channel. Like consolidation, but with some upside. It hit the top of that channel Monday, and is pulling back. No break out this time. But there is a possible opportunity to pick up the stock on a touch back at the bottom of the channel. Watch for a touch and reversal for an entry signal.
Valero Energy (NYSE:VLO)
Valero Energy also broke above a resistance zone Monday, triggering a Cup and Handle with a target to 77. But it started to pullback the next day and is following through lower. A failed break out? Maybe, or maybe just a higher extended Cup and Handle. Watch for a hold and reversal at the prior consolidation, and March highs at 64 as an entry signal.
Disclaimer: The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog. Please see my Disclaimer page for my full disclaimer.