CVX Technical Analysis
Chevron looks like it’s going to be slightly positive at the open as we continue to dance around the 50-day EMA. The market has been going sideways for a while, and I think we are heading back towards the top of that range near the $200 level. The $200 level is an area that a lot of people have watched multiple times. It is the scene of a gap that basically was filled previously, but with everything going on right now and Piper Sandler releasing a note that the Strait of Hormuz should be closed for several months, one would think that there will be a lot of focus paid to these companies in the oil sector soon and I think it should drive prices higher.
XOM Technical Analysis
ExxonMobil looks like it’s going to rally slightly as well. I think perhaps a move towards the $160 level is a very real possibility. Short-term pullbacks see plenty of support at the $145 level, but I think at this point in time you have a situation where traders are just looking to buy the dip anyways. After all, you certainly wouldn’t short crude oil itself and therefore by extension a rising boat, a rising tide lifts all boats I think is going to be the situation in this sector.
SHEL Technical Analysis
Shell looks like it’s getting ready to rally as well, perhaps trying to recapture the $90 level given enough time. It has had nice little pullback here over the last couple of months, but it’s almost like it’s a rounding bottom. We’re trying to find that accumulation. If we can get any type of spike in volume to the upside, I think at this point in time we could go looking at a much higher level, maybe near the $90 level, possibly the $94 level.
If you’d like to know more about technical analysis and how traders use it, please visit our educational area.