“Phillips 66 snapped a three week losing streak, successfully testing major support at the 2015 uptrend line. Volume was on the light side due to the holidays, possibly giving it a lower conviction in some investors eyes. However, it is important to note the bounce at the 40-week simple moving average (200-day SMA) and the finish back above the prior resistance/current support level at $82-$83. Those looking to buy the stock can place a stop loss under last week’s low of $79.47 to minimize risk. In November, the $45B midstream company topped out at $94. This remains major resistance with the key $100 psychological level just above there,” according to See It Market.
Phillips 66 and Tesoro Petroleum are CRAK’s second- and fifth-largest holdings, respectively, combining for over 13% of the ETF’s weight.
“Tesoro fell more than $20 from the highs and is now seeing buyers step up around the bottom of the uptrending channel. It is uncertain how long it will take for the stock to reach new highs, but if the weekly chart above tells us anything it is that volatility is the only certainty for traders. Because of this I would consider longer-dated options (2-5 months out) to avoid getting faked out in the whipsaw oil market and earnings that come out in February,” adds See It Market.
Market Vectors Oil Refiners ETF