Phillips 66 (NYSE:PSX) was spun off from ConocoPhillips (NYSE:COP) in 2012 and has done swimmingly since. That is until oil prices started to head lower in July 2014. Since then the stock moved lower, finding a bottom in January this year. That bottom was nearly to the penny a 50% retracement of the move higher.
Since then the price lifted off the bottom and has settled around $80. The last 2 months the price has been rising against support and tightening against resistance at 82 the last two weeks. With the RSI in the bullish zone and the MACD holding positive and near the signal line, a break over 82 would trigger a buy signal.
From that point a target price of 100 comes into play from a Measured Move off of the January bottom. Using 80 as a stop gives a great reward to risk ratio. The company is not expected to report earnings again until July 29th before the market open, so aside from oil prices, the last bit of news to digest is the current dividend. The stock goes ex-dividend on the 14th and if it holds over 80 that is a good indication of strength. A close under 79 would spell trouble.
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