Trading Idea: - Is Tesoro close to Resistance?
Published on Monday, 01 April 2013 09:32 Written by TradersHuddle Wire
New York, April 1st (TradersHuddle.com) - Shares of Tesoro Corporation (NYSE:TSO) are trading very close to calculated resistance at $59.90. The stock ended the trading session at just $58.55, which is near levels that make it difficult to buy or start a position.
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.
Tesoro's stock range is defined by its calculated support defined at $55.05 and by the resistance level at $59.90; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.
Traders don't have a clear entry point for Tesoro. However, as the stock pulls back towards $55.05 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $59.90 then traders will get an opportunity to enter the stock as it moves to a higher range.