Oil Refiner stocks Gain Again. How Much Is Left In The Tank?

Author: Nicholas Santiago

Since late August when the Federal Reserve Bank Chairman Ben Bernanke announced his quantitative easing plan the entire stock market has inflated sharply higher. One industry group that has soared higher has been the oil refiner stocks. This sector has seen very significant gains and remains strong even today.

Tesoro Corp.(NYSE:TSO) is a leading oil refiner that can refine both heavy and light crude. This stock has rallied higher by nearly 80.0 percent since late August 2010. It is important to realize that oil and gasoline have climbed sharply higher from that time helping the refiner stocks profit margins. Tesoro stock will have daily chart resistance around the $20.00 level. This is an area where institutional profit taking is likely to take place.

Valero Energy Corp.(NYSE:VLO) is another leading oil refiner that has surged higher by over 50.0 percent since late August 2010. Valero Energy Corp. remains in a strong technical uptrend on the charts at this time. However, the $25.00 area should be very strong resistance and a likely pullback level. Often after such a robust move higher these stocks will eventually come under some selling pressure by the major institutions.

Sunoco Inc.(NYSE:SUN) is one of the major oil refiners that is actually trading into important daily chart resistance around the $41.50-$42.00 area. This stock still looks strong on the charts by trading above all the important moving averages. However, this stock may see profit taking at anytime now.

Frontier Oil Corp.(NYSE:FTO) has been one of the strongest oil refiner stocks in the sector. This stock has rallied higher by nearly 60.0 percent since late August 2010. The next important resistance level for Frontier Oil Corp. will be around the $20.00 level. However, there is some minor daily chart resistance around the $18.50 area, therefore, a pullback in the stock could take place at anytime

The oil refiner stocks have had one heck of a rally along with most everything commodity related. As long as crude oil remains strong these stocks should hold up. However, most of these stocks in this sector are now approaching important resistance levels and a pullback or correction for these stocks could be very close.




Nicholas Santiago
InTheMoneyStocks.com

Article Source: http://www.articlesbase.com/day-trading-articles/oil-refiner-stocks-gain-again-how-much-is-left-in-the-tank-3964739.html

About the Author

Nicholas Santiago started trading in 1991. In 1997, he became a licensed Series 7 and 63 registered representative. He managed money for a large, affluent private client group. After applying his knowledge to his client base, he decided it was time to begin teaching those interested in learning his methods. He is an expert in Technical Analysis. He has become an accomplished technician in the studies of Elliot Wave, Gann Theory, Dow Theory and Cycle Theory. In 2007, he partnered with Gareth Soloway to form InTheMoneyStocks.Com and realize his dream of educating others about the truth of the markets.