A broader rally in the stock market on Tuesday was led by the energy sector, which closed the day higher by about 3.3% In one of the best one-day performances a year. In this group, the main component is of Chevron Corporation (Ticker NYSE:cvx at) that resulted from Tuesday’s lift broke out of a well-defined two-month trading range.
Active investors and traders can now exercise stock cvx with bet on Tuesday the trend continues in the coming days/weeks.
Before looking at the chart, it is important to note that a group shares one or two drivers who in the course of the year to explain most of them run in the direction of top and bottom-line growth. In the case of the energy sector in the S&P 500 and oil prices, which plays a significant role in pushing stocks up and down, although each component may have a different degree of sensitivity to the price of oil.
Stock Charts Chevron
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Moving averages legend: red – 200 a week, blue – 100 a week, yellow – 50 a week
With this in mind, let’s look at multi-year weekly chart, shares of cvx. Please note that selling pressure in late January and early February, so is back it is back to the long-term support line. Since then, shares have largely hit sideways in choppy fashion, working off oversold conditions.
At the bottom of the chart I added on the chart of oil price in the face of United States oil Fund (NYSEARCA:USO) in blue. Note that the meeting on Tuesday the price of oil now it is in the upper end of its recent trading range, with a clearly frivolous to potentially break higher. If it survives, then it is, ceteris paribus, will further support the growth of cvx stock.
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Moving averages legend: red – 200 day, blue – 100 day, yellow – 50 days
On the daily chart we see that rally on Tuesday slightly violated, the shares of cvx from a two-month trading range, as indicated by the blue rectangle. Simple bet here is to see the continuation of this rally in the coming days or weeks. The good thing about this stage is that any major bearish reversal and rejection of the meeting on Wednesday will quickly prove a breakthrough properly.
The next upside target is 124 $space.
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Check out Anthony Mirhaydari at the Daily market on April 11.
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