Will Chevron Corp. (NYSE: CVX) Prices Cross the Hurdle on Charts?

Summary

  • Chevron Corp. (NYSE: CVX) has outperformed the index and generated ~16.01 percent returns in the last 3 months.
  • On the daily chart, CVX’s prices are moving in a horizontal channel pattern and taking support from the 100-period Simple Moving Average (SMA).
  • On the weekly charts, the stock has broken an ascending triangle pattern and getting major support from a downward sloping trendline.
  • The Momentum indicator MACD has generated a fresh negative crossover.  

Chevron Corp. (NYSE: CVX) has rallied ~12.95 percent from the low of USD 100.14 made on 21 April 2021 to a new 52-week high of USD 113.11 hit on 10 May 2021. Despite the recent correction, the stock price is trading in an uptrend, forming a series of higher tops and higher bottoms, which indicates bulls have upper hand. On Thursday, the stock closed at USD 106.68, down by 0.64%.

Chevron Corp. Vs S&P 500 Index Performance Analysis

The CVX’s price has witnessed a decent rally and delivered ~14.55 percent gains in the last 3 months, while the benchmark index S&P500 has appreciated by ~4.58 percent in the same tenure. CVX has outperformed the index with a wide margin based on the 13 May 2021 closing.

Source: Refinitiv, Thomson Reuters

On the daily chart, the prices are trading in a horizontal channel pattern for the last three months and currently hovering around the upper band of the pattern. In the past, the bulls have faced a strong resistance at USD 112.64 level, around the upper band of the channel pattern. The prices are trading above the rising trendline support level of USD 105 (black color trend line in the below chart) and continuously taking support of same.

Chevron Corp. on the Daily Chart

Source: Refinitiv, Thomson Reuters; Analysis: Kalkine Group

Furthermore, the price is well placed above its 100-period SMA, acting as the important support level for the stock below the lower band of the channel pattern. The momentum oscillator RSI (14-period) is trading at ~55.43 levels.

Chevron Corp. on the Weekly Chart

Source: Refinitiv, Thomson Reuters; Analysis: Kalkine Group

The stock has broken out of an ascending triangle pattern at USD 103.45 level on 28 April 2021. After consolidating for more than one year in a triangle pattern, the price has registered a decisive breakout that suggests a change in the trend from sideways to upward. The stock prices are trading above a downward sloping trendline support level of USD 104.50.

Moreover, the momentum oscillator- Stochastic slow is trading above 50 levels, indicating a positive trend for the stock. MACD (Moving Average Convergence Divergence) is showing a negative crossover, indicating the possibility of a downside correction in the prices.

Based on the above chart analysis and technical indicators outlook, Chevron Corp. price seems to be in a strong uptrend. As per the chart study, currently, the stock prices are hovering near the key resistance zone and there might be more action expected in stock if the price comes out of the consolidation pattern in the coming weeks.


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