Phillips 66 is a diversified and integrated downstream energy provider that manufactures, transports and markets products that drive the global economy. Co.'s Midstream segment provides crude oil and refined petroleum product transportation, terminating and processing services, as well as natural gas and natural gas liquids (NGL) transportation, storage, fractionation, gathering, processing and marketing services, mainly in the U.S.. Its Chemicals segment consists of its 50% equity investment in Chevron Phillips Chemical Co. LLC, which manufactures and markets petrochemicals and plastics on a worldwide basis.
When researching a stock like Phillips 66, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from PSX Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for PSX stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of those ways is to calculate a Simpe Moving Average ("SMA") by looking back a certain number of days. One of the most popular "longer look-backs" is the PSX 200 day moving average ("PSX 200 DMA"), while one of the most popular "shorter look-backs" is the PSX 50 day moving average ("PSX 50 DMA"). A chart showing both of these popular moving averages is shown on this page for Phillips 66. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the PSX 200 DMA and the PSX 50 DMA, we get a moving average convergence divergence indicator ("PSX MACD"). The PSX MACD chart, in conjunction with the chart of the moving averages, basically helps in visualizing how the moving averages are showing convergence (moving closer together), or divergence (moving farther apart). |
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Video: Technical Analysis