Good technical signals and a possible breakout for CHEVRON CORP.

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.

Zooming in on the technicals.

ChartMill assigns a Technical Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple technical indicators and properties.

We assign a technical rating of 8 out of 10 to CVX. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, CVX is showing a nice and steady performance.

• The long and short term trends are both positive. This is looking good!
• Looking at the yearly performance, CVX did better than 89% 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 part of the Oil, Gas & Consumable Fuels industry. There are 393 other stocks in this industry. CVX outperforms 74% of them.
• 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 - 182.55 range, which is quite wide. It is currently trading near the high of this range.

How does the Setup look 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 9 as setup rating:

CVX has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 186.47. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 177.93, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

How to trade NYSE:CVX?

A breakout could materialize when the stock breaks out to new highs above the current consolidation zone. One could wait for this to happen and buy when this happens. A stop loss could be placed below the consolidation 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.

More breakout setups can be found in our Breakout analyzer.