Does $CVX have more Gas in the tank? Here’s Scott’s take.. – August 18, 2022
CVX XLE
This is Scott with your Chart of the Day from stockmarketmentor.com. Now, I will be honest with you, I kind of thought the energy trade was done. With inflation coming down, gas prices coming down, I thought, oil stocks are done, no point in looking at those.
Meanwhile, XLE ( NYSEARCA: XLE ) kind of came out of a triangle here today and did it on pretty good volume. And so over at stockmarketmentor.com we added a few oil and gas stocks to our Active Trade List. If you want to see what those are be sure and check out what we are doing, take a trial at stockmarketmentor.com.
I will give you a stock right here that I am going to be watching tomorrow, that’s Chevron ( NYSE: CVX ). Now, I wonder, does Chevron ( NYSE: CVX ) have what it takes to break out of this clear pattern? Because from the highs back here in June we got a beautiful downward-sloping trendline and clear short-term support right around this cluster of moving averages.
And so we have resistance, resistance, resistance right underneath. And I want to see if Chevron ( NYSE: CVX ) has enough gas in the tank to push through, hold above, and do it on higher than average volume for a potential retest of the highs back here at 182.00. Even if it can just come up to 174.00ish, that would still be a pretty swing trade.
So keep an eye on Chevron ( NYSE: CVX ), maybe have an alert on this at around 161.20, and look for a strong move out of this consolidation pattern coming on volume.
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