Chevron Bulls take charge! Get in at discounted prices!

CVX

With oil prices on the rise, the price of CVX is going to be on the rise as well.

Great long opportunities here.

Analysis is based on simplified Smart Money Trading Concepts.

While the analysis was conducted on the Weekly time frame. Daily time frame has been taken in to account as well. Projections in time for Options are based off of the recent swing low to recent swing high. Also know as the current trading range or the Strong Low and Strong High.

***Any break and close below the Strong Low of $132.54 invalidates this trade idea. Triggering any long positions to be liquidated.***


Current and recent Price Action is/was deep into the discount zone prior to changing character at $154.35 with a daily break and close above that level.

Seen here on the daily chart :
TRADE SETUPS :

Reward to Risk ratios could vary between 3:1 up to greater than 10:1 depending on the instrument you are trading and the level that you enter in at. The trade setups fairly long term holds. 5-7 months

If you are trading stock CFDs or the underlying ticker :

4 positions between the 62% pullback($154.25) and the 89% pullback($144.54) would be ideal.

Exits:

1st = $189.68
2nd = $205.11
3rd = $225.11
4th = $246.82

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If you are trading stock options:

NO less than a 7 to 9 month expiration!

Suggestion:

Sep 20th Expiration - Buy OTM CALLS between $185-$190
or
Dec 20th Expiration - Buy OTM CALLS between $185-190

ideally 3 or 4 positions

Exits:

(Stock price)

1st = $205.11
2nd= $225.11
3rd = $246.82

If you need an options calculator, I suggest using: https://www.optionsprofitcalculator.com/calculator/short-put.html

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Premium - Discount Zones Explained:

In Bullish market structure/bias ---> Buy below the 50% of a fibo retracement
**Ideally between 62% to 89%**

In Bearish market structure/bias--> Sell above the 50% of a fibo retracement
**Ideally between 62% to 89%**

***Please note: the fibo retracement would be flipped in bearish market structure and the 62%-89% zones would be in the upper 50% of the fibo retracement***

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