Chevron: Pullback and Recovery

Chevron faced increased downward pressure over the past two weeks, which sparked a brief pullback. However, that move was quickly contained, and the stock is now in a dynamic recovery once again. In the primary scenario, we currently see the stock in a corrective upward move, with the high expected below resistance at $216.50. After that, we anticipate another downward move, which should take CVX below support at $162.00. Alternatively, continued strength is possible. In this case, the stock could briefly break above resistance at $216.50 before entering a more extensive corrective phase (probability: 40%).