1 Chart Every Chevron Trader Needs To See
JC Parets of Eagle Bay Capital discussed Chevron Corporation (NYSE: CVX) in the firm’s April 5 Dow Thirty report.
Parets explained that structurally, Chevron had “broken the bottom end of this multi-year rising wedge.”
Momentum remained in a slightly bullish range, however, the relative strength was is still in a multi-year downtrend.
As a confirmation of the relative strength observations, the most recent highs in summer 2014 failed to reach the upper trendline of the rising wedge, according to Parets’ analysis.
Parets added, “This confirmed the CVX failed breakout that we keep mentioning every week. As long as prices remain below the broken uptrend line from the 2009 lows I see no reason to own this from a structural perspective.”
The report suggested looking at the stock “more tactically” as it was still the “best bet.”
Structurally, Parets remained neutral following the stock hitting the firm’s “downside target near 105 [in December] based on the 61.8 percent Fibonacci retracement from the 2011-2014 rally.”
Chevron recently traded at $106.88, down 0.07 percent.
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