In This Pullback It Is Time To Refine

The charts of the refining stock had a good look to them during this weekends review. Problem was that they reported earnings this week. I don’t avoid stocks that report earnings outright, but I am reluctant to take a position ahead of a report based on the chart alone. So with so many others to choose from I generally put on the sidelines, like a timeout for my kids. One earnings are out then I re-look at them to see if there is still potential for a trade. Well two of them, Valero, $VLO, and Tesoro, $TSO, reported yesterday and today and they do still look good. Take a look.


Valero popped higher after earnings and has moved through two minor resistance levels. With only a 3rd overhead at 52.20 before it can challenge the gap higher to 56 it looks good for more. The RSI is over the mid line and running hard higher with the MACD continuing up as well. A trader could get long the stock higher or over that last resistance and use the 20 day SMA at about 49.40 as a stop for a defined risk trade.


Tesoro traced out a ‘W-V’ pattern as it consolidated over the first half of 2014. It broke above this at 58.50 in June and has been consolidating over that breakout level with a minor pullback to support earlier this month. It is Thursday’s price action in a weak tape that is most interesting. The price is testing the top of the break out move at 62.30 with the RSI rising and in the bullish range, the MACD crossed up and the Bollinger bands opening higher. These all support further upside. It may not break today but it is showing real strength.

Get my book, Trading Options: Using Technical Analysis to Design Winning Options Trades.


Want to learn more about Dragonfly Capital Views?
Dragonfly Capital Views Performance Through July 2014 Expiry and sign up here

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

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.

blog comments powered by Disqus
Dragonfly Caps Blog