Let’s follow up on Scott’s $CVX idea from last week – August 23, 2022
CVX
This is Scott with your Chart of the Day. I want to follow up on CVX ( NYSE: CVX ), this is Chevron ( NYSE: CVX ). On Thursday of last week, I brought this chart to your attention on the Chart of the Day. Since then we’ve had a pretty good breakout here, on good volume.
So let’s break things down, last Thursday was this day here. I was looking for a break out of this clearly defined downward-sloping trendline on volume. Now, it tried here on Friday, it tried to go and couldn’t; got a clear rejection right at that potential breakout level.
But then, here, on Monday, you can see how the bears tried to bring it down and couldn’t. It is almost like it was in a weird position where the bulls weren’t strong enough to break it out, but the bears weren’t strong enough to break it down.
Today we resolved this move with a strong bullish engulfing candlestick on higher-than-average volume. So this trade is in motion and if you are in this right now or took this trade I just want to recommend, maybe having a potential stop loss right under today’s intraday low. Or you can use that daily 8-exponential period moving average.
If you get a close below that 8-day within the next day or two here. You maybe want to close that trade out as it is not continuing higher. I don’t know about you, but if I am buying a stock I am buying it because it is going up, not because I think it is going to chop around and frustrate me for days on end.
So that is what I would do here on CVX ( NYSE: CVX ) if you took this trade. The oil and gas stocks have been rocking and Dan Fitzpatrick at stockmarketmentor.com added a ton of them to our Active Trade List over the last few days and our members have been making bank with a lot of these trade ideas.
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