After a strong impulse down Chevron is in what appears to be a corrective structure.
We will be waiting for a break out of the lower trend line. Once that happens we will watching on lower time frames for a retest and rejection before taking the short position. The targets would be 55, 30 & 15 which are previous strong support levels.
If the rally breaks up and out of the 110 level then this trade will be invalid.
You can see there was a consolidation and then break down and then again so this is now an active trade.
CFDTradingo
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We're on the lower trend line now so I'm watching on a lower time frame for a break down and retest before selling.
pixelyo
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If it gets to $55, it would form a head and shoulder which technically could send the stock to $15. But I don't think it will happen. Stocks don't go from $135 to $15 for large cap companies ($200 billion market cap)... unless the world is ending or the whole oil energy becomes obsolete.
Just take a look at the CVX monthly chart from 1975-2016, but please use logarithmic scale. The arithmetic scale doesn't show the truth when checking a very long time frame. You'll see CVX has a good uptrend with a few hiccups.
I'm not bullish on CVX and I respect your idea. I only think it is too extreme. Thank you for sharing it!
pixelyo
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Not trying to disrespect your idea and I'm not long CVX, but... $15??? You got to be kidding. Why $15 and not $1?
CFDTradingo
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A fair question, I couldn't get it on the chart without making the idea too small.
From around 2000 onwards there has been a boom so I feel its likely to unwind that and then potentially overshoot.