PSX has pulled back to a historically bullish trendline on the charts
Phillips 66 (NYSE:PSX) stock is down 4.2% to trade at $93.80 at last glance, as the global bank selloff weighs on energy stocks. However, should oil bounce back in the near term, PSX also happens to be near a trendline with historically bullish implications.
The stock has come within one standard deviation of its 200-day moving average for the eighth time in the past three years. According to Schaeffer's Senior Quantitative Analyst Rocky White, PSX was positive one month later 86% of the time, averaging an 8.7% gain. A similar move would push the shares back up to the $102 level, recovering its March losses.
An unwinding of pessimism in the options pits could provide tailwinds as well. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), PSX's 10-day put/call volume ratio of 1.34 ranks higher than 83% of readings from the past year.