Hamilton's E-Wave Analysis

TSO, Tesoro, Feb 2010

Tesoro, Spanish for treasure, is one of those oil companies you might want to look at. It is mostly in the business of refining, much like a chemical plant. I do not claim to understand any part of the business but apparently it used to be that if you took in heavy oil (At a lower price!) and were able to crack it, you would , in a manner of speaking, pocket the difference. Apparently those days are over as too many off-shore competitors can do the same. This has put a crimp on their earnings lately. But, they are down and refining in Texas is not about to end, so perhaps there is upside. Here is the picture.

From 90 to 5 is a pretty good bear market by any measure, but this one has crawled along the bottom suggesting that it may find its composure. Wait for a 60% retracement of the first up leg from say 5 to 18, which is at about 10.50. Buy with a stop at say 8 and wait for $20.

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