Thursday July 28 2016
Yesterday we thought the refiners were finally breaking out to the upside. Instead it was a fake out to the upside. On Wednesday all half dozen I track violently reversed.
Tesoro TSO
The same pattern appears to be repeating, the price makes a nice two week run and then collapses at or near one of the MAs.
Yesterday was a 3.5% drop. And MACD is topping as well And at top on balance volume is headed lower. All told, these are negative signs for the refiner complex. Lower prices ahead.
WTIC
The 13 and 34 bar exponential moving averages provide reliable turn points. This was the case on the upside from the February low.
Now it is the case on the down side from the June high. If the 38-42 area is going to be support it needs to happen soon.
WTIC dropped 2.33% and Brent was down 1.59% yesterday.
Is energy leading stocks again? The stock market is marking itme rather than going up. With the two conventions ending the markets will soon sgtart worrying about the election, and for good reason.
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