CVX pushes through Wednesday's high
Chevron Corporation (CVX) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, CVX ended Thursday at 76.38 gaining $7.11 (10.26%), significantly outperforming the Dow Indu. (6.38%). Closing above Wednesday's high at 73.14, the stock confirmed its breakout through the previous session high after trading up to $3.96 above it intraday.
Daily Candlestick Chart (CVX as at Mar 26, 2020):
Thursday's trading range has been $9.21 (13.1%), that's far above the last trading month's daily average range of $6.05. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for CVX.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 72.86 (now S1), which is likely to act as support going forward. After having been unable to move lower than 66.64 in the prior session, the market found buyers again around the same price level today at 67.89. The last time this happened on March 11th, CVX actually lost -8.15% on the following trading day.
Although Chevron is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for Chevron. Out of 522 times, CVX closed higher 52.49% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after seven trading days, showing a win rate of 50.96% with an average market move of 0.05%.