Tesoro Close to Probable Support

Published on Friday, 03 February 2012 07:08 Written by Christopher Lynn

New York, February 3rd (TradersHuddle.com) - Shares of Tesoro Corporation (NYSE:TSO) closed the trading session at $24.62 near its 50 day and 200 day moving averages currently set at $23.46 and $23.52 respectively. Tesoro's price action is above these important levels, which could translate into a trading opportunity.

Tesoro Corporation (NYSE:TSO) refines and markets petroleum products, and provides transporting services. The Company operates refineries, as well as a network of retail and refueling stations in the western United States. Tesoro also markets gasoline and diesel fuel to independent marketers and commercial end users.

Although the price action is above important moving averages, it's important to highlight that the 50 day moving average is currently below the 200 day moving average resulting in not a prime setup where buying the dip will present a good trading opportunity.

Looking at peaks and troughs horizontal support and resistance levels, we can see current calculated support at $24.66 and calculated resistance at $25.97. These levels should also be evaluated by traders when planning their trades, as they provide an insight into the latest price action.

If traders want to establish a position on Tesoro, should evaluate their trade, as it will certainly be better to wait, given that the stock is technically broken with the 50 day moving average trading below the 200 day moving average. Traders can also look at the current range defined by the peaks and troughs see where the current price action of stock is and establish a short trade versus those levels.