Chevron Post Earnings Watch
- Posted by Greg Harmon
- on July 26th, 2012
Chevron, $CVX, reports earnings before the bell Friday morning and heads into the report with a very positive looking chart. The weekly view below shows that it is approaching the all time highs from March near 110. It has technical indicators that support a move higher as well. The options market is pricing in a move of about $2.60 cents Friday, and if it is to the upside this will trigger a breakout. Look for 115 as the next stop. As an aside the 3-box reversal Point and Figure chart carries a price objective of 121. That is some big upside for such a large cap name. Based on the pace of the current run up expect it to take until September for this to happen. You can lay out the $110 or as a better strategy look to buy the September 110 Calls, which were offered at $2.00 late Thursday. Look to reduce the cost by also selling the September 97.50 Puts, bid at 91 cents, for a low cost entry with about a 50 delta.
If the move is to the downside, all bets are off and expect a test of the 100 area as support and failure there to fall back to support at 96.
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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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