Delek US Holdings, Inc. (NYSE: DK)

Delek US Holdings, Inc. operates as an integrated downstream energy company that operates in petroleum refining, logistics, and convenience store retailing businesses. The company operates in three segments: Refining, Logistics, and Retail. The Refining segment owns and operates two refineries in Tyler, Texas, and El Dorado, Arkansas; and produces various petroleum-based products used in transportation and industrial markets. The Logistics segment gathers, transports, and stores crude oil, as well as markets, distributes, transports, and stores refined products. This segment serves oil companies, independent refiners and marketers, jobbers, distributors, utility and transportation companies, and independent retail fuel operators. The Retail segment markets gasoline, diesel, and other refined petroleum products, as well as convenience merchandise.
Delek's stock is forming a head and shoulders (H&S) pattern. Please take a look at the 1-year chart of DK (Delek US Holdings, Inc) below with my added notations:
DK finally broke out through its $27 resistance area in January and rallied higher as expected. Over the last (3) months the stock has created a very important level at $35 (navy), which is also the “neckline” support for DK's H&S pattern. Above the neckline you will notice the H&S pattern itself (blue). Confirmation of the H&S would occur if the stock broke below its $35 support. If DK breaks that level, the stock should move lower from there.
The Tale of the Tape: DK seems to have formed a head & shoulders pattern. Although a trader could go long at $35 expecting a bounce, the stock's pattern implies an eventual breakdown. If that happens, a short trade should be entered on a break of the $35 level.

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