Refiners

The crack spread is taking a hit from its recent highs. This is not good for a the refiners. Again this isn't the actual crack spread, but i use it to show the direction of the spread.

Theses refiners just can't catch a break! Oil goes up, gasoline prices don't keep up; oil comes down, gasoline prices fall even faster.

The refiners look like they are on the brink for further downside.

FTO

Lower low next?

SUN

Looks very bad.

TSO

It is still within its range, but judging by other refiners, it should break down soon. If I was still bullish in this sector, this would be a very nice entry.

WNR

This one still looks somewhat bullish, pulling back to previous support and 50 DMA. But the upward momentum certainly is not there.

Oil is very confusing here. Reports show an increase in gasoline supply and decrease in demand. This is driving gasoline prices down big time, yet oil manages to trade with the market and participates in rallies.

Refiners

My little chart to show the direction of the crack spread. Seems to be pulling back a bit, but it is hanging in there.

I expect oil to pullback some more and hopefully improve the crack spread.

The charts of the refiners look very promising, however you always have to consider the possibility that these stocks have not bottomed. But given that crude has topped, the outlook of the refiners should not deteriorate further unless gasoline demand drops down huge.

FTO

Breaking to the upside again, I wouldn't chase it here. But it is now above the 10, 20 and 50 DMA which are all increasing. Very bullish.

TSO

Breaking to the upside and showing a lot of strength. A little overextended here since it has gone from 15 to 20 in 8 days. It is above the 10, 20 and 50 DMA which are all increasing. It is also right at the 100 DMA, which may provide resistance. A pullback or a breakout followed by a pullback should be bought. Very bullish.

WNR

It is now above the 10, 20, 50, 100 DMA and they are all increasing. This gives me a lot of confidence that this has bottomed. Bullish but only intraday since I expect pullbacks.

SUN

Stabilizing, the least extended of the refiners that I follow.

HOC

Another example of strength, not my favorit, but it can make moves.