CHEVRON CORP is setting up nicely for a breakout.

Our stock screener has spotted CHEVRON CORP (NYSE:CVX) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NYSE:CVX.

What is the technical picture of NYSE:CVX telling us.

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

Overall CVX gets a technical rating of 8 out of 10. Both in the recent history as in the last year, CVX has proven to be a steady performer, scoring decent points in every aspect analyzed.

• The long and short term trends are both positive. This is looking good!
• Looking at the yearly performance, CVX did better than 91% of all other stocks. We also observe that the gains produced by CVX over the past year are nicely spread over this period.
• CVX is one of the better performing stocks in the Oil, Gas & Consumable Fuels industry, it outperforms 75% of 394 stocks in the same industry.
• CVX is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so CVX slightly outperforms the market at the moment.
• In the last month CVX has a been trading in the 168.33 - 182.38 range, which is quite wide. It is currently trading near the high of this range.

How do we evaluate the setup for NYSE:CVX?

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NYSE:CVX currently has a 8 as setup rating:

CVX has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a support zone below the current price at 177.9, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

How can NYSE:CVX be traded?

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

Of course, there are many ways to trade or not trade NYSE:CVX and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

Every day, new breakout setups can be found on ChartMill in our Breakout analyzer.