CVX closes lower for the 2nd day in a row
Chevron Corporation (CVX) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CVX ended the week 1.26% higher at 90.28 after losing $1.76 (-1.91%) today on low volume, notably underperforming the Dow Indu. (-0.04%) ahead of tomorrow's Memorial Day market holiday. Closing below Thursday's low at 91.28, the share confirmed its breakout through the previous session low after trading up to $1.82 below it intraday.
Daily Candlestick Chart (CVX as at May 22, 2020):
Friday's trading range has been $2.14 (2.34%), that's below the last trading month's daily average range of $3.08. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for CVX.
Three candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and two bearish patterns, the Bearish Short Candle and the Black Candle.
After trading down to 89.46 earlier during the day, the market bounced off the key technical support level at 89.77 (S1). The failure to close below the support could increase that levels importance as support going forward. The stock closed back below the 20-day moving average at 91.40. When this moving average was crossed below the last time on Tuesday, CVX actually gained 3.77% on the following trading day.
Chevron shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the nearby swing high at 93.47 where further buy stops could get triggered. Further buying might move prices higher should the market test April's close-by high at 95.74.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Chevron. Out of 66 times, CVX closed higher 53.03% 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 10 trading days, showing a win rate of 65.15% with an average market move of 1.28%.