Chevron (CVX) was upgraded to a "buy" by a sell-side firm Monday. When we reviewed CVX on Sept. 17 we wrote that, "The price of CVX has corrected lower for six months now. We have some tentative signs that support around $95 is holding and that gives us optimism about a move to the upside. Traders could go long CVX on strength above $102.50 risking to $94."
Let's check out the charts again.
In the daily bar chart of CVX, below, we can see that the shares have rallied strongly after breaking above $102.50. Prices made a new 52-week high today. Prices are nicely above the rising 50-day and the rising 200-day moving averages. We can also see a recent bullish golden cross of these two indicators.
The On-Balance-Volume (OBV) line has been strong since late September and that helps to confirm the price gains. The Moving Average Convergence Divergence (MACD) oscillator is pointed down but narrowing towards a new buy signal, I expect.



