Is Tesoro Expecting a Break Out?

Published on Monday, 25 June 2012 09:20 Written by TradersHuddle Wire

New York, June 25th (TradersHuddle.com) - Tesoro Corporation (NYSE:TSO) closed the trading session at $24.31, near its 200 day moving average set at $24.49. Tesoro's stock action is below this level, which makes the stock difficult to be bought, as it will face resistance as it approaches its 200 day moving average.

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.

Latest price action range, defined by a peaks and troughs algorithm, placed calculated support at $21.68 and resistance at $24.12. Traders should closely monitor these levels, as they provide great reference points for the latest price action in Tesoro.

If traders want to establish a position on Tesoro, given that resistance could materialize as the stock approaches its 200 day moving average, a trade might materialize as the stock manages to break this important level. After the breakout, the 200 day moving average could be used as support going forward. However, until the break materializes, traders need to exercise patience.