Staying with our focus on energy today, we find positive clues on Chevron (CVX), another member of the Dow Industrials.
Like other energy names, CVX peaked around the middle of 2014 and started a downtrend that cut $60 out of its $130 price tag before rebounding in late August of this year.
Volume was heavy at the end of August, signaling that some investors in CVX may have liquidated their long positions at what, with the benefit of hindsight, appears to be a bottom or certainly a low of some importance.
This shorter-term chart of CVX, above, shows the more sensitive 50-day moving average and the On-Balance-Volume (OBV) line.
Here we want to point out the strong rally at the beginning of October that crossed above the 50-day average. Also note the improving OBV line in the bottom panel as investors appear to be ignoring Goldman Sachs' call for $20 oil.
Like Exxon (XOM), CVX is making a high-level consolidation, holding onto the bulk of its October gains. Further strength is expected.