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Phillips 66 Stock Broke below Its 50-Day Moving Average

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May. 21 2019, Published 1:20 p.m. ET

Phillips 66’s moving averages

In the current quarter, Phillips 66 (PSX) stock has fallen 10.9%. We’ll discuss Phillips 66’s moving average trend beginning with its performance in the past few quarters.

In the fourth quarter of 2018, Phillips 66’s 50-day moving average broke below its 200-day moving average due to a steep fall in its stock price and 50-day moving average. Lower refining cracks and weaker equity markets impacted the stock in the quarter. Usually, the short-term moving average breaking below the long-term moving average is a technically bearish sign.

In the first quarter, better-than-expected fourth-quarter earnings and stronger equity markets had a positive impact on Phillips 66 stock and its 50-day moving average. The stock crossed over its 50-day moving average, which is a favorable sign.

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Moving averages in the current quarter

In the current quarter, Phillips 66 published its first-quarter earnings, which declined. The company’s earnings fell across its segments except for the midstream segment. The fall had a negative impact on Phillips 66 stock. The stock has broken below its 50-day moving average in the second quarter, which isn’t a good sign.

The weakness in Phillips 66 stock has impacted both of its moving averages. Phillips 66’s 200-day moving average has fallen 3.3% in the quarter. The fall has narrowed the gap between both of the company’s moving averages. Phillips 66’s 50-day moving average, which was 7.3% below its 200-day moving average at the beginning of the second quarter on April 1, is 5.8% below its 200-day moving average.

Overall, Phillips 66’s stock position, below both moving averages, shows that it’s in a technically bearish zone. The stock will have to move up sharply to reverse the situation.

Peers’ moving averages

Delek US Holdings (DK), PBF Energy (PBF), and HollyFrontier’s (HFC) 50-day moving averages trade 5.7%, 17.6%, and 17.0%, respectively, below their 200-day moving averages.

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