CVX pushes through key technical resistance level
Chevron Corporation (CVX) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
CVX finished Wednesday at 78.56 surging $2.21 (2.89%) on high volume, significantly outperforming the Dow Indu. (0.13%). This is the biggest single-day gain in over a month. Closing above Tuesday's high at 78.48, the share confirmed its breakout through the previous session high after trading up to $1.00 above it intraday.
Daily Candlestick Chart (CVX as at Sep 16, 2020):
Wednesday's trading range has been $3.52 (4.61%), that's far above the last trading month's daily average range of $2.00. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CVX.
Despite a weak opening Chevron managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Tweezer Bottom and the White Candle which are both known as bullish patterns.
Buyers managed to take out the key technical resistance level at 78.04 (now S1), which is likely to act as support going forward. The last time this happened on August 24th, CVX actually lost -1.23% on the following trading day. After having been unable to move lower than 75.96 in the previous session, the market found buyers again around the same price level today at 75.96.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Strong Up Move" stand out. Its common bullish interpretation has been confirmed for Chevron. Out of 203 times, CVX closed higher 51.72% 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 58.62% with an average market move of 0.18%.