CVX, XOM and OXY Forecast – Oil Stocks Jump After US Military Actions

Chevron Technical Analysis

Chevron is up about 10% in premarket trading as traders start to absorb what happened in Venezuela. With Donald Trump explicitly suggesting that damages will be paid out of oil production in Venezuela, this bodes well for several companies.

Remember, about 20 to 25 years ago, when Hugo Chavez took over the country, he nationalized oil production and kicked a bunch of Western oil producers out. Well, now, it looks like they’re going to finally get their money back. It’s not going to be overnight, and that is one of the things I’m watching here.

That being said, Chevron is a little bit different in the sense that it does still operate in Venezuela to a point. So, it has an existing footprint. If oil starts flowing out of Venezuela at a little bit faster clip due to a lack of sanctions, Chevron will be a big winner here. This is why you’re seeing Chevron take off the way it is, while crude oil is pretty stagnant. It’s going to be an interesting dichotomy here.

But I think this is a market that maybe a pullback might offer a buying opportunity. But for it to be up 10%, and this is not a small stock. In premarket trading, this is going to be difficult to chase, especially as we are heading toward pretty significant resistance in the form of about $170. Nonetheless, we may eventually break out.

Exxon Mobil (XOM) Technical Analysis

Exxon Mobil, of course, looks pretty healthy as well. It is testing a major high here at $126, and the premarket, Exxon, may break above there and continue to go higher. It’s been pretty healthy for a while, so quite frankly, I don’t see any reason why it won’t.

I actually prefer this type of price action over what you’re seeing in Chevron, mainly because Chevron is, although I do think it goes higher eventually, it is immediately overdone as traders realize that they are still in Venezuela, and I think this will help lift other companies that will be coming back into the fold in that region.

Occidental Petroleum (OXY) Technical Analysis

Occidental Petroleum looks like it is getting a little bit of a knock-on boost as well. As we are set to open just under the crucial $43 level. If we can break above there, then the 200-day EMA should be challenged just above $44.

Anything above that level then opens up the possibility of a move to the $50 level. Occidental probably won’t benefit the way some of these other companies will, but if the industry rises, it tends to lift most companies. So, with that, this looks like a bullish bottoming pattern. We’ll just have to see a little bit of momentum come back into the market and push it to the upside.

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