Chevron – Is Chevron Finally Ready to Make an Upside Breakout?
Chevron (CVX) stock has been making a huge sideways trading pattern the past 12 months. The shares have been testing the highs of June but can the rally keep going? Let’s check out a few charts.
In the daily bar chart of CVX, below, we can see that the shares have shown fresh strength since the end of October. Prices rallied above the 50-day and 200-day moving average lines and now the slopes of both of these averages are positive.
The On-Balance-Volume (OBV) line has moved up from late December but has yet to break its June peak. The Moving Average Convergence Divergence (MACD) oscillator turned up from the zero line for an outright go long message.
This weekly bar chart of CVX, below, is strong-looking. Prices are above the rising 40-week moving average line. Volume has increased lately and the OBV line is confirming the price gains.
The weekly MACD oscillator is bullish.
In this daily Point and Figure chart of CVX, below, we can see a potential upside price target in the $145 area.
Bottom-line strategy: Aggressive traders could go long CVX at current levels if they can afford to risk a drop to $90. The $145 area is our price target. A strong dollar and weak energy prices could derail the advance so keep an eye on that.
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