Many stocks and leading sectors have rolled over in the past few months. One important industry group that has really plunged has been the oil refinery sector. Leading stocks in this sector include Tesoro Corporation (NYSE:TSO), Valero Energy Corporation (NYSE:VLO), Phillips 66 (NYSE:PSX), HollyFrontier Corp (NYSE:HFC), and others.
Tesoro Corp was one of the strongest oil refinery stocks in 2015. The stock peaked out in November 2015 at $119.67 a share. Today, TSO stock is trading at $69.05 a share. The current decline represents a 42.0 percent decline in the share price. Often, when stock decline with type of momentum they will drop down to the next major institutional support level. That area tells us that the potential downside in the stock is around the $53.00 area. Now please understand, there will be minor bounces and rallies along the way, but the pops should be sold until this stock hits the next major institutional support level around the $53.00 level.