Chevron (CVX) is a well known energy company in more than 180 countries. It is fully integrated with activities in all aspects of oil and natural gas, such as hydrocarbon exploration and production, refining, marketing and transport, chemicals manufacturing and sales. It also has business in power generation. CVX is listed on NYSE and is a component of DJI and S&P 500 under Energy sector.

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Since Sept 2021, CVX price has been moving in an up trending channel steadily. The price broke out of the channel on 25 Jan 2022 with localized increase in volume suggesting presence of demand. This was followed by a shallow pull back and backing up range.

That was the setting up the stage for a sign of strength rally accompanied by huge volume, until buying climax (BC) was formed on 8 March at $171. Subsequently a shallow automatic reaction (AR) on 15 March helped to define a slightly down sloping trading range.

Several attempts to retest the range, including a significant Wyckoff upthrust (UT) hitting around $180 on 8 June. The reaction from this was a rapid sign of weakness pulling back with increased volume. The price continued to test the low until 14 July at around $131. Then it moved between the trading range.

A spike in volume on 16 September failed to move the price down, in an example of increased effort but minimal result. This suggests the presence of supply absorption. However, there was Wyckoff spring action in late September and early October that broke below the trading range. Nevertheless, the price launched into a mini sign of strength rally that saw it committed above the trading range.

Bias

Bullish. The trading range from March 2022 onward seems to suggest Wyckoff accumulation. CVX may pull back around $165 before attempting to challenge the upper trading range around $176 or even the previous high at $180.

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