Energy giant Chevron (CVX) is holding above its March lows. Is this a quiet shift from the downward trend hitting stock prices since the middle of November? Shares of CVX were raised to a buy recommendation Tuesday by two sell-side firms.
Let's check the charts.
In this daily bar chart of CVX, below, I can see that prices are trading below the declining 50-day moving average line and below the cresting 200-day line.
The On-Balance-Volume (OBV) line shows weakness from the middle of November but the line is holding above its March low.
The Moving Average Convergence Divergence (MACD) oscillator is below the zero line but narrowing towards a potential cover shorts buy signal.
In this weekly Japanese candlestick chart of CVX, below, I see a mixed picture at this point in time. Prices trade below the cresting 40-week moving average line. The weekly trading volume has been diminishing since early 2022.
The weekly OBV line is down from its early 2022 peak but it has not made a new low since September. The MACD oscillator recently moved below the zero line for an outright sell signal.
In this daily Point and Figure chart of CVX, below, I can see that the software is projecting a potential downside price target in the $144 area. A trade at $150.93 or lower is needed to refresh the downtrend.
In this weekly Point and Figure chart of CVX, below, I can see a potential upside price target in the $212 area.
Bottom line strategy: Aggressive traders could probe the long side of CVX at current levels risking two consecutive closes below $15.
