Chevron (CVX) announced a dividend hike and a large share buyback program Wednesday and share prices were higher in early trade on Thursday. The company is scheduled to report their latest earnings figures on Friday before the opening bell. Let's check the charts and indicators.
In this daily bar chart of CVX, below, I can see the price action through Wednesday but not including the late Wednesday rally on the heels of the share buyback program. Prices are in a short-term uptrend within a longer-term uptrend. CVX is above the 50-day and the 200-day moving average lines. The daily trading volume histogram shows no special features and no increases unfortunately.
The daily On-Balance-Volume (OBV) line does show us a mostly positive trend the past year. The Moving Average Convergence Divergence (MACD) oscillator is slightly above the zero line in buy territory.
In this weekly Japanese candlestick chart of CVX, below, I see a positive looking picture. Prices are in a longer-term uptrend and prices are trading above the rising 40-week moving average line.
The weekly OBV line shows both a longer-term uptrend the past three years but also a shorter uptrend from late September. A new high in the OBV line is not far away and that event will help confirm the price gains.
The MACD oscillator is above the zero line but currently flat and could turn up or down from here depending on the price action.
In this daily Point and Figure chart of CVX, below, I can see an upside price target in the $200 area.
In this weekly Point and Figure chart of CVX, below, I see a price target in the $204 area.
Bottom line strategy: CVX is bid higher in early trading. I have no special knowledge of what the company will tell shareholders Friday morning but I cannot imagine a bad report. Stay long CVX and raise stops to $165.
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