Candlestick Analysis: Tesoro Petroleum

tesoro petroleum morning star

The chart above is Tesoro (TSO) at the end of trading day on 23 Sep 2011 (Fri).

The market had a massive sell-off for the past 2 days. Tesoro had a big gap down as seen from chart. On Friday, it formed a southern Doji. After a big bearish red candle, and then a doji… Looks interesting to me. It has the potential to form a Morning Star formation.

I think the market has over-reacted and oversold. It is oversold at least for this counter, as confirmed by stochastics. Definitely will have a reversal. Whether it is short term or long term, I don’t know. I will let the market tell me. I might enter a position if the opening price for Tesoro is higher than the previous close.

Resistance will be at about $21.50 which occurs at the gap (some call it a window), shown by the horizontal blue line in the chart.

I am going against the trend if I go long. But after the massive sell-off, I think the chance of a reversal is very high. Shall stay nimble as see how it goes.

Well, this is just my personal views, don’t follow and believe whatever I said. Please practice independent analysis and judgement. I might be wrong too!

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