Stock of the day: Chevron
28 December 2023
In today's discussion, we turn our attention to Chevron Corporation, an energy giant that's demonstrating intriguing chart movements. November and early December saw Chevron's stock price hover close to mid-term lows in a sideways pattern, illustrated by the yellow rectangle on the chart. However, mid-December marked a turning point as Chevron broke free from this lull, initiating an upward trend. This bullish momentum carried significant weight, propelling the stock beyond a crucial horizontal resistance level at $150, shown in green.
The key focus now lies in how Chevron's stock price interacts with this newfound support level. The recent retest of this breakout point – transitioning from resistance to support – has proven successful, with the stock maintaining its position above this critical level. This positive sentiment will likely persist as long as Chevron remains above this green-marked support zone. However, traders should watch closely for any potential dips below this threshold, as breaking below could switch the signal to bearish, indicating a sell opportunity.