Chevron appears to be ending its correction and resuming its bigger uptrend with a five-day surge and breakout. The stock surged to a 52-week high in December and then retraced 61.8% of the prior advance with a decline into April. The decline basically ended in April because the stock found support in the 103 area from April to July. Notice that the broken resistance zone turned into a support zone - and held. The retracement amount and return to broken support are normal for corrections. Price action is turning bullish again as the stock broke above the June high and the 50-day EMA moved back above the 200-day EMA. Also note that Chevron is leading the Energy SPDR because the price relative (CVX:XLE ratio) hit a new high.
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