Anticipated Rally In Progress For Phillips 66
by Mike Paulenoff
June 5, 2022 • 11:41 AM EDT
Back on May 13, amid a thrust in the price of Crude Oil from $95/bbl to $112/bbl, Mike Paulenoff alerted MPTrader members to an actionable technical setup in energy producer PSX (Phillips 66), writing:
"My work has been extremely friendly since the beginning of May, looking for PSX to break out of its 11-month corrective accumulation pattern that will trigger a thrust towards a potential target zone of 110-115. As long any forthcoming weakness is contained above the sharply up-sloping 50 DMA on a closing basis, PSX is in a technically bullish juxtaposition. Today's surge to new highs at 97.98 last seen in January 2020 has the right look of the initiation of upside acceleration from the 11-month accumulation pattern."
PSX, which was trading at 97.25 at the time, has since climbed to a multi-year high at 104.84, a full 7.8% above his initial alert on May 13, and looks poised for still-higher prices that could approach Mike's optimal upside target of 110-115.
After last week's "disappointing" OPEC+ meeting, but ahead of a tentatively scheduled trip to the Mid-East by President Biden later this month, amid relentlessly rising gasoline and energy prices in the U.S., what's next for the trajectory of Crude Oil and energy names such as PSX, APA, SWN, XOM, HES, XLE, XOP, OIH?
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Back on June 17th, this is what we discussed about the TLT (20+ Year T-bond ETF)when it was trading at 112.53:
The TLT put in a big upside reversal day yesterday (6/16/22) from 107.80 to 111.72, closing RIGHT AT the High of 111.72, leaving behind a Bullish Engulfing Candle on my Daily Chart (not shown here). The last time TLT traded at 107.
On Friday June 17, Mike Paulenoff posted an alert to MPTrader members about an emerging setup in AMZN:
AMZN is one name that pops out at me that should benefit from an initial and sustained correction in traditional energy and transportation costs. AMZN needs to climb above and sustain 110 for my work to generate a more confident technical signal, otherwise, I cannot rule out another loop down that tests and breaks key May-June support at 101.26 to 101.
Last Wednesday, prior to the official FOMC rate hike of 75 bps, Mike Paulenoffwarned MPTrader members about the likelihood of additional weakness in the beleaguered home builders, writing about the ITB (iShares US Home Construction ETF):
In that, neither my pattern work nor my intermediate-term Momentum gauges offer much technical confidence that ITB will be able to carve out a meaningful corrective basing area in and around 53.
On Thursday May 19, in the midst of some serious weakness and carnage in the retail sector that had equity market-watchers doubting the resiliency of the almighty US consumer, Mike Paulenoff turned MPTrader members attention to PARA (Paramount Global), writing:
For the past 5 months, we could make the technical argument that PARA has carved out an accumulation-base formation that attracts buyers every time the stock dips beneath 29.00. We can also make the case that every time the stock climbs above 36.
On March 11, with AAPL in a month-long down-leg and trading at 156.34, Mike Paulenoff posted a relatively bullish analysis for MPTrader members, writing:
I am watching AAPL more closely than usual these days, as a bellwether for the health/vulnerability of the overall market.
