Marathon Petroleum (MPC) looks like it has plenty of upside on the charts. Looking at the daily, weekly and Point and Figure charts (below), I can see a bullish setup that is already breaking out on the upside.
In this daily bar chart of MPC, below, you can see the new high that was made today. This comes only a few months after the late July/early August highs. This new high is just a continuation of the strength seen on this chart from early November. Notice how the 200-day moving average line has risen the past 12 months? MPC is also above the rising 50-day average.
The pattern of volume is hard to read and interpret, but the On-Balance-Volume (OBV) line has been positive and rising since early February. A rising OBV line only happens when the volume of trading is heavier on the days when the stock closes higher. Trading more stock on an up day is a sign that traders are being aggressive. The Moving Average Convergence Divergence (MACD) oscillator is in the lower panel and it looks like it will turn up to a fresh go-long signal.
In this weekly bar chart of MPC, below, you can see prices are above the rising 40-week moving average line. Prices are close to breaking the 2015 highs around $60. The weekly OBV line is neutral but also close to making a new high for the move up. The weekly MACD oscillator has been above the zero line for the past 12 months and is crossing upward to a fresh outright go-long signal.
In this Point and Figure chart of MPC, below, we have a more bullish picture from the bar charts above. The "A" on this chart represents the first trade for October and it is a breakout over the $56 highs seen in 2015 (this is different from the highs on a bar chart). An upside price target of $69 is projected.
Bottom line: The price of crude oil is up one day and down the next, but MPC has been trending higher the past year. Aggressive traders could go long MPC on strength, risking below $54 while looking for longer-term gains to the $69-$70 area.