Friday, 23 March 2012

CVX - bearish energy sector

Chevron is having all sorts of problems, not least the story of execs being refused an exit from Brazil.

CVX daily, near term

Todaw saw a particularly bearish close, outside of the lower bollinger. All indicators are now bearish, and there is currently no sign of a floor. Near term targets would be the recent low of 102, then 99.

The bears who are looking for spring-doom, will need to see stocks like CVX break below last Novembers levels, in this case..$92. That's almost 15% lower, and would be asking quite a lot considering the VIX is still barely moving upward.

If Oil prices can get back below $100 in the next few weeks, that'd certainly also help keep the downward pressure going. Right now, CVX is one of the weakest dow stocks out there, and is best left alone...much like those CVX execs in south America.