Breadth numbers were showing twice as many stocks declining as rising this morning, so finding one of those stocks going up is a bit harder. One name that looks promising is Tesoro (TSO).
TSO has had a nice upward progression so far this year (chart above) with every sideways consolidation followed by an upside breakout to a new high. The rally is more impressive when you look at the past two years (below) when you can see that TSO doubled while our favorite technical indicators are still bullish.
The long-term picture showing the advance from the late 2008 low (below) is still more impressive and speaks for itself.
A point and figure chart (below) reinforces our bullish outlook for TSO. Notice the rising intraday lows. Buyers have been more aggressive on each pullback in the past year.
Now that we have you convinced of the bull case for TSO, what can we expect on the upside? Traders should set their sights on $114 and then $124 as targets while a decline to $92 would get us to check our charts again, just in case a breakdown was beginning.