CVX Tests Major Resistance! Can the Bulls Keep the Momentum?
Technical Analysis Overview: 1-Hour Chart: * Trend: CVX remains in a strong uptrend, approaching key resistance near $157.5. * Indicators: * MACD: Displays slight bullish momentum, but histogram is flattening, signaling possible consolidation. * Stochastic RSI: Overbought at 87, indicating potential short-term exhaustion.
30-Minute Chart: * Price Action: * CVX is consolidating near $157, just under key resistance at $157.5-$160. * Support at $155 has held firmly, demonstrating buyer strength in this range.
Key Levels to Watch: Support Levels: * $155: Immediate support level and highest positive NETGEX. * $152.5: Next support zone, aligning with GEX10. * $148: Strong support near the 3rd PUT Wall.
Resistance Levels: * $157.5: Immediate resistance, coinciding with the 3rd CALL Wall. * $160: Major resistance, aligning with the 2nd CALL Wall. * $165-$170: Long-term resistance zones with significant CALL walls.
* Negative Gamma Levels (Support): * $155: Strong support aligned with highest positive NETGEX. * $148: Backed by significant PUT support (-0.89% GEX).
Options Metrics: * IVR: 41.4, indicating moderate implied volatility. * IVx: 23.3, slightly below average. * Call/Put Bias: PUTs dominate at 22.7%, showing caution in the market.
Bearish Scenario: * Entry: Rejection at $157.5 or a breakdown below $155. * Target: $152.5-$148. * Stop-Loss: Above $160 to control losses.
Directional Bias: * CVX is consolidating below a critical resistance zone at $157.5. A breakout could lead to bullish momentum toward $160-$165, while failure to break higher may result in a pullback to $155 or lower.
Conclusion: CVX is approaching a crucial inflection point near $157.5. Traders should monitor this level for signs of a breakout or rejection. A decisive move above $157.5 could signal further bullish continuation, while a breakdown below $155 may signal consolidation or a retracement.
Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always conduct your research and trade responsibly.
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