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Chevron’s Chart Flashing Multiple Bullish Signals

Accumulation has increased with a golden cross adding to CVX's momentum


Chevron (CVX) — Formerly known as Chevron Texaco, this is the second largest oil company in the U.S., and fifth largest publicly traded oil company in the world. S&P reports that CVX has reduced its refining operations to focus on large “upstream projects with higher margin potential.” They forecast earnings of $11.21 for 2013 and $12.55 for 2014.

Dividend increases and share repurchases are expected to continue. The company currently pays an annualized dividend of $4 per share for a 3.2% yield.

CVX has been trading in a long descending triangle with a firmly established bottom at $115. Late in December, it broke through an intermediate resistance line at under $124, establishing a double-top at $126. Accumulation has increased, and the 50-day moving average crossed above the 200-day moving average, a bullish signal known as a golden cross, adding momentum to the stock.

A break above $126 should result in a run to $128, and finally a break and run to as high as $148. The stock is suitable for both intermediate-term and long-term investors.

CVX Chart
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Article printed from InvestorPlace Media,

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