BATS:CVX   Chevron Corporation
CVX was the Dow 30 component that had the highest loss on Friday.

The chart clearly shows that the earnings report was not going to be good. The pattern is a failed bottom as there has been rotation to lower inventories of the stock for most of this year.

Declining Accum/Distribution indicators at the lows of the range followed by a negative divergence between the price trend and Accum/Dist are indicative of rotation within the sideways trend that never developed into a bottom.

Another Relational Technical Analysis tip to watch out for in other stocks, especially ahead of earnings reports.

Martha Stokes, CMT

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