Phillips 66 operates as an independent downstream energy company. The
company operates in three segments: Refining and Marketing (R&M),
Midstream, and Chemicals. The R&M segment purchases, refines,
markets, and transports crude oil and petroleum products, such as
gasolines, distillates, and aviation fuels primarily in the United
States, Europe, and Asia. This segment also engages in the power
generation operations. The Midstream segment gathers, processes,
transports, and markets natural gas; and transports, fractionates, and
markets natural gas liquids in the United States. This segment markets
residue gas to electric utilities, industrial users, and gas marketing
companies. The Chemicals segment manufactures and markets petrochemicals
and plastics. This segment produces and markets ethylene, propylene,
and other olefin products; and aromatics products, such as benzene,
styrene, paraxylene and cyclohexane, as well as polystyrene and
styrene-butadiene copolymers.
To review Phillips' stock, please take a look at the 1-year chart of PSX (Phillips 66) below with my added notations:
For almost the entire last 3-4 months, PSX has been stuck within a
common pattern known as a rectangle. Rectangle patterns form when a
stock bounces between a horizontal support and resistance. A minimum of
(2) successful tests of the support and (2) successful tests of the
resistance will give you the pattern. PSX's rectangle pattern has formed
a $60 resistance (blue) and a $55 support (red). In the past these two
levels have acted as BOTH support and resistance at one time or another
for the stock.
The Tale of the Tape: PSX has formed a rectangle
pattern. The possible long positions on the stock would be either on a
pullback to $55, or on a breakout above $60. The ideal short
opportunities would be on a break below $55 or at $60.
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