Chart of the Week: Phillips 66
This week we’re going to be focusing on energy name Phillips 66, symbol PSX. Let’s take a look at the chart. I’ve already put some markings in on the chart.
As you can see from the early part of summer, the stock really went on a nice run as gasoline prices were up, energy prices were higher. We have a nice series of higher highs and higher lows in the chart.
We see in the candlesticks had moved from a pink and purple area to teal and then to light blue. Now what does that mean? Teal and light blue in the go-no-go composite of indicators tells us that the stock is bullish. Once it moved into that light blue phase over here it just continued to move on and has some bullish momentum.
All the other indicators we show here – the MACD, the Chaikin money flow, and the TDI, which is the Traders Dynamic Index – all were bullish back then.
And then we hit a level of about $120-122 that the stock stalled. Buyers kind of stopped buying it. And we pulled back a little bit.
So we’re kind of in a little consolidation area right now. We are making some higher lows but we also have some lower highs.
On Monday and Friday of last week, we saw the stock break above that nice downtrend line. Didn’t confirm it on Monday from Friday. But we are still looking for some higher prices to that $119-120 level. Once we get above there I think we have some upside to go here.
You can see the MACD is starting to turn positive.
Also money flow here you can see from the early part of October is making higher lows. It’s back over zero.
The Traders Dynamic Index, which is the TDI. It tells us where relative strength is on the stock versus bollinger bands. This is also on a bull signal too. We seem to have some good volume trends as well.
I think that this stock – obviously, you’ve got to deal with this overhead resistance from the highs back in the early part of September. But once we get through that I think we have some higher prices in Phillips 66.
I’m looking at probably about $130 by the first quarter of 2024, which would be a nice gain from here – about 10%.
Take a look at PSX. I have some calls on it to January and February. At the money calls in the service and we also have some in the chat room.
So take a look at Philips 66 when you get a chance.
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