Tesoro Corp. had been building a base for most of 2009 and 2010 (dashed lines). The stock then started a new up-leg that culminated with a high of $28.74 in April, 2011 (A.) Subsequently, the stock pulled back to its rising 40-week moving average and to support (B – former “ceiling” becomes “floor” – dashed line). Recent price action (C) suggests the stock appears ready to resume the long-term up-trend. Only a decline below $20-$21 would be negative.
Point & Figure measurements provide targets of $34 and $37. Higher targets are visible.
Monica Rizk is the senior Technical Analyst for Phases & Cycles Inc. (www.phases-cycles.com) . Ron Meisels is a contributor to the www.NA-marketletter.com website. They may hold shares in companies profiled. Please see the site for a glossary.
Chart source: www.decisionplus.com