Oil Refiners Show Strength
All of the leading oil refiner stocks have been strong since mid-January and continue to remain strong on the charts. The refining sector has outperformed other sectors in the energy space.
Valero Corp.(NYSE:VLO) is a leading independent oil refiner. In mid-January Valero stock was trading around the $24.00 level before breaking out and reaching the $30.00 level in mid-February. Valero stock pulled back with the major stock indexes in late February and early March finding support around the $26.00 level which was another higher low. When stocks make this type of pattern it is a sign of strength. Today, Valero stock is trading higher by 0.74 cents to $29.90 a share. The $30.50 level will be minor near term daily chart resistance. Should Valero close significantly above that level on volume the stock could have an upside bias into the $32.50 resistance area.
Tesoro Corp.(NYSE:TSO) is a leading oil refiner that can refine both light and heavy crude. This stock is trading higher today by 0.69 cents to $26.68 a share. The stock is attempting to making a new 52 week high this morning and remains strong on the charts. Should Tesoro stock close at a new high the next important resistance level for this stock is around the $30.00 area.
Frontier Oil Corp.(NYSE:FTO) is another leading oil refining company. This stock is trading higher this morning by $1.43 to $28.42 a share. The recent 52 week high was made on February 17, 2011 at $29.27 a share. Therefore, the $29.50 level will still be near term minor daily chart resistance. The current pattern on the charts remains strong at this time as the stock trades above the daily 20, and 50 moving averages. The next important resistance for the stock should it make a new high will be around the $32.00 area.