In our March 10 review of Chevron Corp. ( CVX) we gave a bullish outline. The energy giant reported their latest quarterly numbers Friday morning and the charts are powering higher.
Let’s check the charts and indicators again.
In the daily bar chart of CVX, below, we can see that the shares turned lower from early June. Prices stabilized around the rising 200-day moving average line and have turned upwards ahead of the earnings release. CVX is likely to retest the declining 50-day moving average line Friday.
The daily On-Balance-Volume (OBV) line is turning upwards again after a shallow decline from early June. A rising OBV line tells us that buyers of the stock are being more aggressive which heavier trading volume on days when the stock has closed higher. The Moving Average Convergence Divergence (MACD) oscillator has turned upwards for a cover shorts buy signal. An outright buy signal could come soon.
In the weekly Japanese candlestick chart of CVX, below, we can see lower shadows earlier this month as prices retested the rising 40-week moving average line.
The weekly OBV line shows that it is bottoming in recent weeks. The MACD oscillator is pointed down in a take profit mode but it has been narrowing so a bullish crossover could develop in the weeks ahead.
In this daily Point and Figure chart of CVX, below, we can see an upside price target in the $175 area.
Bottom-line strategy: Continue to trade CVX from the long side.