CVX: Breakout and retest point higher

Question: Hey Steve, could you please take a look at CVX? with the geopolitical news on the name what levels would you find keys for the stock? will now still be a good buy LT pending on your outlook?

Stepping back and looking at the longer-term weekly chart for Chevron Corp. (CVX) shows a constructive technical backdrop. CVX completed a bullish breakout from a mid 2014 to early 2022 big base, followed by a late 2022 to early 2025 correction that effectively served as a retest of that breakout. This is a longer-term bullish setup for CVX.

On a tactical basis, there is still some work to be done. Holding above this week’s opening upside gap at 159–155 would be important and could act as the catalyst for a push through key resistance from the early-2023 to early-2025 peaks in the 168–173 area. A decisive breakout above that zone would provide additional confirmation of the larger breakout and retest structure and reinforce the bullish trend.

If that occurs, upside potential initially points back to the November 2022 high at 189.68, with longer-term big-base targets extending toward 198 and 216.

On the downside, if CVX struggles and fills the 159–155 gap, the next key support levels to watch are the early-October low near 149 and the mid-December low near 146.

Bottom line: From a long-term perspective, CVX remains technically constructive, but near-term confirmation of this bullish setup would improve materially on sustained strength above 168–173.

Chart 1: Chevron Corp. (CVX)