Oil giant Chevron Corp. (CVX) raised their buyback guidance and the stock is soaring higher Tuesday. Oil prices are also very strong with West Texas Intermediate trading above $100/bbl. What more could an investor wish for? Let's check out the charts.
In this updated daily bar chart of CVX, below, we can see that the chart turned up from September and the price strength is not an overnight sensation. Prices are trading above the rising 50-day moving average line and the rising 200-day moving average line. Trading volume has increased significantly the past three months and the On-Balance-Volume (OBV) has risen to confirm the price gains. The Moving Average Convergence Divergence (MACD) oscillator has been bullish since late September when it moved above the zero line.
In this weekly Japanese candlestick chart of CVX, below, we went back five years instead of our typical three year look back. Prices have broken above the highs going back to 2017. CVX is trading above the rising 40-week moving average line but not extended (overbought) above it.
The weekly OBV line has been rising since the pandemic low of early 2020. The MACD oscillator is in a bullish alignment above the zero line.
In this daily Point and Figure chart of CVX, below, we used a five box reversal filter. Here the software shows us a $205 price target.
In this weekly Point and Figure chart of CVX, below, we also used a five box reversal filter. Here we see a price target of $237.
Bottom line strategy: In our December 28 review of CVX we wrote, "Continue to hold previously recommended longs. Raise stops to $108 from $101. The $136 is our first price target followed by the $168 area which could be reached in late first quarter 2022." CVX has passed our $136 target and we have the rest of March to reach our $168 target. Continue to hold longs and raise stops to $129 from $108. $205 is our target after $168.
