Integrated energy company Phillips 66 (PSX) is scheduled to report latest quarterly numbers on Tuesday. Let's review the charts and indicators.
In this daily bar chart of PSX, below, I can see a strong rally from late September. Prices soared northward and quickly broke above the prior high in June. PSX corrected into December and has resumed the advance. PSX is trading above the flat 50-day moving average line and above the rising 200-day line. The trading volume has been neutral. The On-Balance-Volume (OBV) line has not been a leading indicator but does show strength in the October-November period. The Moving Average Convergence Divergence (MACD) oscillator is slightly above the zero-line.
In this weekly Japanese candlestick chart of PSX, below, I see a longer-term bullish trend. Prices are in an uptrend and trade above the rising 40-week moving average line. Lower shadows on the candles in January suggest that traders are rejecting the lows and the path of least resistance is up. The OBV line shows strength from September and is not far from making an upside breakout. The MACD oscillator is above the zero line but the two moving averages that make up this indicator are on top of each other.
In this daily Point and Figure chart of PSX, below, I can see an upside price target in the $140 area. A trade at $114 or higher is needed to refresh the uptrend.
In this weekly Point and Figure chart of PSX, below, I can see a bigger upside price target of $188. Impressive.
Bottom line strategy: I have no special knowledge of what PSX will tell shareholders on Tuesday but I find the charts and indicators bullish. I recommended purchasing PSX back on May 26, but was stopped out. Traders could consider repurchasing PSX at current levels risking to $97; $114 and $188 are the price targets now.
