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Refiners On Deck For The Next Bear Market: VLO TSO

Falling oil prices & rising crack spreads have been quite beneficial to the refiners although the charts indicate that the ride will likely soon come to an end. TSO (Tesoro Corp) is likely to fall to at least the $66 level, about 30% below current levels, once prices break below this large rising wedge pattern. VLO (Valero Energy Corp), with a nearly identical chart pattern, is also likely to prove a very lucrative swing/trend short trade sometime in 2016, also with a short-entry to be triggered on a weekly close below this long-term rising wedge pattern.

Both may or may not need another thrust back up inside the wedge pattern and as these are weekly charts, it could be a while before these refiners break down but I did want to share the charts for those interested & will try post an update at or shortly before either of these stocks breakdown.

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Jan 14, 2016 3:04pm|Categories: Uncategorized|Tags: , |2 Comments

2 Comments

  1. jegersmart January 15, 2016 9:37 am at 9:37 am

    As these have gapped down along with the wider market, probably best to wait to see what happens on these…?

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  2. jegersmart January 20, 2016 9:40 am at 9:40 am

    Tesoro down almost 5%, Valero not far behind. I don’t have a position though right now, want to wait to see if dust settles….

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