PBF Energy Inc., a leading U.S. oil refiner, experienced a stock increase of 15.67%, closing at $34.10. This rise happened because global oil prices went up. The main reason for this increase was new U.S. sanctions on Russia, which have cut down the global oil supply by limiting Russian sales, particularly to countries like India. As a result, domestic refiners are seeing higher demand. ### Technical Analysis for PBF Energy The latest developments have put PBF Energy close to breaking through a key technical level. The stock finished just below a long-term trendline at $34.20, a level it has struggled to surpass since August 2024. With geopolitical factors boosting the stock’s momentum, PBF may soon cross this line and stay above it. If PBF Energy exceeds the $34.20 level, more buying opportunities could arise, with the stock aiming for a resistance point at $38.25. This point could act as an initial hurdle before reaching a short-term target of $44.06. The current upward trendline is expected to guide the stock’s path toward this goal. Given the strong 15.67% rise yesterday, we are now right at the crucial $34.20 level. This increase was driven by the new sanctions on Russian oil, improving the outlook for domestic refiners. This presents an urgent technical test for us. ### Impact of Rising Oil Prices Brent crude futures have surged past $110 a barrel this week, reaching their highest point since the summer of 2025. This aligns with recent data from the Energy Information Administration (EIA), which shows that U.S. refinery crack spreads have widened by over 12% in October. These factors confirm the robust fundamental support for this stock. For those anticipating a breakout, purchasing November or December 2025 call options is a direct strategy. We are considering strikes near the $38 level, aligning with the next significant resistance target of $38.25. A confirmed break above $34.20 on heavy volume would signal us to take action. However, the recent sharp price increase may have raised implied volatility, making options more costly. A more affordable strategy could be a bull call spread, such as buying the November $35 call and selling the November $40 call. This method would allow us to profit from the expected price increase while limiting our upfront costs. Another option is to sell cash-secured puts at or just below the $34.20 level. This strategy reflects our belief that the stock will remain above this new support in the coming weeks. It enables us to collect a premium while anticipating an upward trend toward the $44 target. We recall a similar scenario in the energy sector in early 2022, when geopolitical events triggered a major rally that rewarded those prepared for a breakout. The current macro environment and technical situation feel quite similar. Any dip toward the $34.20 level should be viewed as a potential chance to initiate or increase our bullish positions. Create your live VT Markets account and start trading now.

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