Refiners Building a Steady Trend

Energy has been anything but quiet lately. Crude has swung on headlines while refiners have quietly absorbed the volatility and continued to press higher, suggesting the tape is rewarding operational leverage over macro noise. In a market still sorting out leadership, the steady bid in select downstream names stands out. When price trends persist despite crosscurrents, it pays to pay attention.

That brings us to Phillips 66 (PSX). Over the past nine months, shares have carved out a constructive sequence of higher highs and higher lows, punctuated by multiple fresh 52-week highs along the way. The 21-day EMA crossed above the 63-day EMA in early January ’26, and price continues to hold above both averages — a configuration that reflects sustained upside momentum rather than a short squeeze. With ongoing concerns around global refining capacity and geopolitical uncertainty, refiners like PSX remain positioned to capture volume, and the chart confirms institutions have been accumulating exposure.

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From a trade construction standpoint, the options market is not pricing in an unusual amount of premium despite the broader energy volatility. Given the established trend, straightforward call options offer a defined-risk way to participate in continued upside. There is currently an in-the-money call that, if shares were to advance another 10% from here, would be positioned to return approximately 102.8% — illustrating the kind of asymmetry available when strong trends meet reasonable option pricing.

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Wishing You the Best in Investing Success,