Is Tesoro Breaking Out?
Published on Thursday, 24 January 2013 06:40 Written by TradersHuddle Wire
New York, January 24th (TradersHuddle.com) - Shares of Tesoro Corporation (NYSE:TSO) closed the session at $44.46 just above calculated resistance at $44.19. The stock effectively broke out and grasped the attention of momentum traders, which could eventually push the stock to a different trading range.
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.
The stock was trading in a well defined range with support at $41.82 and resistance at $44.19. Given that this range was broken, traders will be closely monitoring Tesoro's price action to gather clues on the future direction.
From a technical perspective, it can be expected that previous resistance becomes support, as the new range gets defined. However, given that Tesoro is still near the broken resistance level, traders will be focusing on the $44.19 level to see if the stock holds the breakout without rolling over.