Don't Ignore This Chart!

Chevron Leads Energy Sector with Breakout $CVX


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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--Arthur Hill CMT

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Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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