After its 2012-2013 bullish run, HollyFrontier Corporation (NYSE:HFC) -- an independent petroleum refiner in the United States -- entered a multi-month consolidation period. It looks like an interim fulcrum bottom has been building since then. One can identify this consolidation as an inverse head-and-shoulders pattern or rounded bottom but it doesn’t really change anything. The truth is that only a decisive break above 55 will signal about the end of a multi-month sideways market. Should price meet resistance at 55 and turn back, we would consider a more complex consolidation pattern to unfold.
Anyway, since July 2013, HFC has been moving within an upward channel printing higher highs and higher lows. The last four consecutive days HFC closed above 50, a psychological level which served as strong resistance over the last year, printing a new 52-week high. The unfolding price upswing within the raff regression channel and a rise above the middle line of the channel and above the strong resistance at 50 increases the probability of reaching the upper trend line in the 55 area.
Disclosure: Long HFC.
Disclaimer: I express only my personal opinion on the market and do not provide any trading or financial advice (see Disclaimer on my site).