Much like most stocks, Chevron NYSE:CVX
didn't have a good month of September this year, but it looks like things might be turning around. Looking at the daily chart
, as been trying to break past the 8 EMA
average throughout the last month but found little success until yesterday. Today the price broke through the 13 day EMA
. As the stock heads towards the 21 day EMA
, one of two things can happen. It can pull up to it and continue down or it breaks past the 21 day EMA
and continues going up. Rather than trade directionally, option traders should consider selling put credit spreads. Although this way cap the upside, it also limits your downside .