Chevron Near Important Moving Averages Ahead of Earnings; Boyd Closing in to Resistance
After stocks closed lower after the Fed rally lost steam amid a flurry of earnings reports and as weekly jobless claims climbed and new home sales in December fell for the first time in four months.; we identified the following trading ideas.
Shares of Chevron (NYSE: CVX) closed the trading session at $106.59 near its 50day and 200day moving averages currently set at $103.86 and $101.88 respectively. Chevron's price action is above these important levels, which could translate into a trading opportunity, particularly amid the catalyst of its earnings report tomorrow before the opening bell.
On average analysts expect a profit $2.92 per share on revenues of $71.08 billion.
Although the price action is above important moving averages, it's important to highlight that the 50day moving average is currently above the 200 day moving average, signaling that the stock is not technically broken from the long side and buying the dip strategy might be the best setup out there.
Looking at peaks and troughs horizontal support and resistance levels, we can see current calculated support at $103.51 and calculated resistance at $110.66. Traders when planning their trades should also evaluate these levels, as they provide an insight into the latest price action.
Another trading idea is Boyd Gaming (NYSE: BYD). The owner and operator of gaming facilities from Las Vegas To Atlantic City ended the session at $8.99, very near its calculated resistance at $9.05. Boyd's price action is just below the key resistance levels, which make it difficult to buy.
Traders don't have a clear entry point for Boyd Gaming, as the stock is well above support, however, as the stock pulls back towards $6.71 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $9.05 then traders will get an opportunity to enter Yum! Brands stock by establishing a position as the stock moves to a higher range.
Boyd Gaming Corporation (NYSE: BYD) owns and operates several gaming properties throughout the United States. It uses names like Fremont, The Orleans, Sams Town, and Gold Coast to market its properties. The company also operates entertainment, restaurants, shopping, and recreational facilities on its properties.
