Chevron (CVX) has been trading sideways for the past seven months and now it is ready and willing to trend higher. My charts say to buy it here and risk below $102 for now. $125 is my upside price objective. Details below.
In this one-year daily chart of CVX, below, shows the price, the volume, and the indicators all in gear on the upside. Prices are making a new high for the move up. The slopes of the 50-day and 200-day averages are positive. The On-Balance-Volume (OBV) line is moving up with prices telling us that buyers are more aggressive and the MACD oscillator is in a bullish configuration above the zero line.
In this weekly chart of CVX, below, we have everything in gear just as with the daily chart. Prices are pointed up above the rising 40-week moving average line. The weekly OBV line is positive and the MACD oscillator is crossing to a fresh buy signal.
Strategy: Go long CVX here or add to existing longs here. Risk below $102 and look for gains to $125 in the first half of 2017.