I think that CVX is over-extended here at $103.69 on this rally from the 87 level up to 104. There were strong sellers that emerged at these levels back in April, May, June, July & August. Look for a retest of the $100-$98 support level with risk to $106+. I liked getting long crude oil when prices were down near $80 per barrel, but now that prices are back towards $90 per barrel, I think it makes sense to look at the short side or at least hedge off your long exposure here.
Comments
timwest
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BUYERS - SELLERS are the labels for the ellipses on the chart.
timwest
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I had typed in "<= buyers turned into sellers =>" to explain the golden ellipses on the chart. The buyers in May-June at 100-96 turned into sellers on the rebound in Aug-Sep at the same level. Now that the stock has cleared that level, that should be the likely support level.