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Tesoro Corp. rallied from $20.77 (U.S.) to $65.75 (A-B) and then settled in a large triangle pattern made up of higher lows and lower highs (dotted lines). This formation suggests anxious sellers and bullish buyers. Recent price action above the top of this formation indicates more bullish buyers than anxious sellers and the start of a new up-leg (C).

Sentiment indicators including the 40-week moving average (40wMA), the MACD (lower panel) and the rising trend-line (solid line) confirm the positive status. Only a sustained decline below $54-$55 would be negative.

Point & Figure measurements provide targets of $69 and $79. 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 and Tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.

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