Trading Setup for CVX – 12-7-2022

Let’s take a new look at CVX [Chevron]. When we previously looked at CVX it was trading in the 178 area, right above the 34ema. Since then it’s broken through that support level and is heading towards the next major support level at the 89ema, which is at around 169. Its 200ma is at around 161.

WTI Crude futures broke slightly below a major support level from 11-25 at around 74. If it continues lower, the next support level is at the 200 moving average at around 64.

If crude gets a bounce or the S&P rallies, CVX will most likely move higher too. The smart thing to do here is to see how crude futures react to the $74 support level before taking a position in either direction.