Chevron Corp. (CVX) is due to report their numbers on Friday. While many investors have written off big oil, we still want to check out the charts.
In this daily bar chart of CVX, below, we can see that prices have largely traded sideways after May. There have been some tradable moves like the one in November but by and large trend traders have been disappointed.
The On-Balance-Volume (OBV) line has followed prices up and down and is not showing us sustained aggressive buying. The Moving Average Convergence Divergence (MACD) oscillator is only slightly above the zero line.
In this weekly bar chart of CVX, below, we find little to get excited about. CVX is just slightly above a slowly improving 40-week moving average line.
The weekly OBV line is not giving us a bullish signal and the MACD oscillator moved above the zero line this month but it has already begun to narrow.
In this daily Point and Figure chart of CVX, below, we can see a downside price target of $84. A break of $83 might generate more weakness.
Bottom line strategy: Big oil is trying to recreate itself but I do not think we are going to see impressive results in the short run.
