Hello fellow traders. In today’s article, we will have a look at Chevron Corporation [
In the chart below you can see the Elliott wave view of CVX in the weekly chart, where the stock has a right side tag against a $69.65 low. Up from there, it ended red wave I at a $133.76 peak in a 5 wave Elliott wave structure. Below from there, it managed to reach the equal legs of black ((A))-((B)) at the $88.83-$105.01 region, which is where the buyers appeared. We can see nicely that CVX reached the areas and then rallied in an impulsive manner, making red wave II pullback complete at its December 2018 low ($100.21).
Up from its December 2018 low, it ended black wave ((1)) at a $127.20 peak and also the proposed black wave ((2)) pullback at a $113.80 low. Above from there, it is close to taking the black wave ((1)) peak. The key will be CVX breaking that peak because then it will show an incomplete sequence to the upside from its December 2018 low, making it bullish. The possible target can be the equal legs of black ((1))-((2)) which will come at around $140.50.
CVX 07.02.2019 weekly Hour Chart Elliott Wave Analysis
This will have huge effects on other oil-related stocks. If CVX takes the black wave ((1)) peak, then oil will be supported after all. In the chart below you can see an overlay of light crude oil vs Chevron and the correlation with each other. If CVX takes the key level of $127.20, then oil could trade into its equal legs area from the January 2016 low. That implies oil trading to the $93.70-$105.80 area in the future.
Chevron 07.02.2019 weekly Hour Chart Elliott Wave Analysis
If you are a long term investor with a horizon of at least several months or years, then this can be a good opportunity. There’s no reason to make things too complicated. We wish you all good trades.
Equities Contributor: Elliottwave Forecast
Source: Equities News
