Phillips 66 (PSX) - August 11, 2023
Recent trading action in Phillips 66 (PSX) indicates that the current energy market rally is broadly based, including refining and downstream companies in addition to producers, services, and integrated companies. In the last month, PSX has climbed 168 positions within the SIA S&P 500 Index Report, climbing up from the bottom of the Neutral zone back up into the
Favored zone for the first time since early May, finishing yesterday in 68th place. This weekly chart highlights the importance of the recent breakout to new all-time highs by Phillips 66 (PSX) shares. Since bottoming out in October of 2020, PSX has been under accumulation, steadily climbing in a step pattern of rallies followed by pauses at higher levels.
PSX spent the has ten months in a common consolidation phase, trading in the $90.00 to $110.00 range while digesting previous gains. The shares started to climb in June with a rally up off of support. The breakout over $110.00 signals that a new rally phase has started.
Measured moves suggest the potential for upside resistance near $130.00 or $150.00 on trend. Initial support appears near the $110.00 breakout point, followed by the $100.00 round number.
For nearly three years, Phillips 66 (PSX) has been under accumulation, with each correction being contained at a higher low above a 45-degree trend support line, including the most recent one which occurred over the first half of this year. In recent weeks, accumulation in PSX has accelerated with the shares staging bullish Double Top, Spread Quadruple Top, and Spread Triple Top breakouts while rallying to new all-time highs.
Horizontal counts suggest potential upside resistance may appear near $122.55, $130.05, or the $150.00 round number on trend. Initial support appears near $104.60 based on a 3-box reversal and a retest of a recent breakout point.
With a perfect SMAX score of 10, PSX is exhibiting strength across the asset classes.
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