Wednesday, November 28, 2012

Chevron (CVX) gallops through 2-month channel resistance

NOV28 1931PST. Chevron Corp (CVX), a component of the 30-share Dow Jones Industrial Average, rallied through a robustly defined 2-month price channel in today's trade. The price action occurred on somewhat heightened volume: 7.0M shares, compared to a trailing 3-month daily average of 6.1M. The hourly-candles chart follows below.

NB: Price action on November 15, as seen in the chart below, had many features commonly seen in a capitulation; namely: the day's bearish sentiment penetrated below a well-defined trendline, volume spiked, and the decline's minimum occurred in the near vicinity of significant "round number" support (the day's low was only $0.66 above an even $100).

CVX. June 25, 2012 to present. Hourly candles.