I’ve recently posted my thoughts on XOM, the largest stock in the world and largest component of the S&P 500 but here’s another behemoth which is sure to have an impact on the broad market, assuming these patterns play out. CVX (Chevron Corp) is currently the 4th largest component in the S&P 500 so I’ve put together a series of charts, complete with annotations, starting with the daily time frame and zooming all the way out to a 28 year, monthly period chart. By my interpretation, these charts look bearish on all time frames but in the short-term (i.e.-daily chart), I can easily see a little more upside in CVX in order to backtest the recently broken uptrend line. That may or may not happen & if so, the upside should be limited.
Bang. Right to the penny.
As we’ve been coming up to the ideal period to make a spring high, loosely from the last week of March to the first week of May, I have been carefully tracing through the options for such a high, watching support trendlines break, the first false alarm retracement at the 2007 high, and the formation of topping patterns from the current 1597 high. (more…)