Oil Refinery Stocks On Fire, But Sector Is Now Overbought
Today, the major stock indexes are coming under broad based selling pressure with most industry groups trading lower. There is one sector that is in rally mode and that is the oil refinery stocks. Leading oil refinery stocks such as Phillips 66 (NYSE:PSX), Tesoro Corporation (NYSE:TSO), Valero Energy Corporation (NYSE:VLO), and Western Refining, Inc. (NYSE:WNR) are all trading higher during the trading session. All of these stocks have benefited from the recent decline in crude prices, however these stocks are now very overbought on a technical basis. The upside for this industry group should be limited from here. Traders and investors should now watch for a pullback or consolidation in the leading oil refinery stocks before seeing higher prices.