PSX) Holded Gains Amid Weak Q3 Earnings Results

Phillips 66 (NYSE: PSX) PSX share price reacted to the disappointing Q3 earnings results. Sellers tried to push PSX share below the 100 day EMA, but buyers prevented the fall with a rejection candlestick near $110 which suggests that the bulls are willing to put up a fight. Further follow-on buying will push PSX stock beyond the 20 day EMA near $115, whereas, if it slips below the cluster of $110, it will retest the round mark of $100.

Moreover, the chart shows that PSX stock has retraced from the highs of $125 and took support on the 50% Fibonacci level. Furthermore, the chart shows that PSX stock has made a gravestone doji candlestick which highlights the bulls’ strength amid weak Q3 results. The net income fell by 46.46% to $1.69 Billion (YoY) and the total revenue slipped by 2.50% (QoQ) to $40.19 Billion. As per the options chain data, at the strike price of $110, open interest of 49 hundred shares on the call side, whereas 42 hundred shares on the put side (Data from the Nasdaq.com). This options chain data indicates that, there is an equal interest of bulls and bears, and fresh long buildup was made.

At press time, PSX stock price was $110.93 with an intraday gain of 0.75% highlighting the neutrality on the charts. Moreover, the trading volume increased by 2.25% to 5.219 Million while the market cap is $49.369 Billion. However, analysts have maintained a buy rating with a yearly target price of $129.65 suggesting a growth outlook.

Phillips 66 engages in the processing, transportation, storage, and marketing of fuels and other related products. The company operates through the following segments: Midstream, Chemicals, Refining and Marketing & Specialties. The Midstream segment provides crude oil and refined products transportation, terminaling and processing services, as well as natural gas, natural gas liquids and liquefied petroleum gas transportation, storage, processing and marketing services. The company was founded in 1875 and is headquartered in Houston, TX.

Will PSX Stock Rebound to $120 or Retest $100?

On the daily charts, PSX stock price is close to the 100 day EMA making the gravestone doji candlestick. The price action shows that PSX stock held the 50% Fibonacci retracement zone which is a positive sign for the rebound. Furthermore, despite the weak Q3 earnings results, sellers were unable to push PSX share price below the 100 day EMA ($110).

The RSI curve stated near neutrality and shows a bullish divergence indicating buying interest on the charts. MACD shows a convergence of the MA line with the signal line indicating that buyers have absorbed the selling pressure and succeeded in holding the 100 day EMA.

Summary

PSX stock price is close to the 100 day EMA and is holding the gains amid the weak Q3 numbers posted this week. However, sellers tried to push PSX stock below the support zone of $110, but failed. Furthermore, the chart shows that PSX share price held the gains and made a doji candlestick.

Technical Levels

Support Levels: $105 and $100

Resistance Levels: $115 and $120

Disclaimer

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