4 Trade Ideas for Chevron: Bonus Idea

Here is your Bonus Idea with links to the full Top Ten:

Chevron, $CVX, started to move lower in a falling wedge in March. It found support as it retraced 38.2% of the total move higher from the end of October. It broke the wedge to the upside 2 weeks ago and ended last week in consolidation. The Measured Move is to 108. The RSI is rising in the bullish zone with the MACD rising and positive.

There is resistance at 104.50 and 107.50 then 111 then 113. Support lower comes at 101.25 and 100 then 95.75. Short interest is low under 1%. The stock pays a dividend with an annual yield of 5.14% and has been trading ex-dividend since August 18th. The company is expected to report earnings next on October 29th.

The October options chain shows the largest open interest at the 100 and 97.50 strikes on the put side, and at 100 and 105 on the call side. The October 29 Expiry options have open interest focused at the 100 and 109 call strikes and at low on the put side. The November options show open interest build from 105 down to a peak at 90 and 85 on the put side. On the call side it is focused between 100 and 110.

Chevron, Ticker: $CVX

Trade Idea 1: Buy the stock on a move over 104.50 with a stop at 100.50.

Trade Idea 2: Buy the stock on a move over 104.50 and add an October 29 Expiry 104/99 Put Spread ($1.80) while selling the November 110 Calls ($1.78).

Trade Idea 3: Buy the October 22 Expiry/November 110 Call Calendar (1.18) and sell the October 29 Expiry 98 Puts ($1.10).

Trade Idea 4: Buy the November 97.50/105/115 Call Spread Risk Reversal (90 cents).

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with only one quarter of the year remaining, saw equity markets staging their biggest pullbacks since the spring.

Elsewhere look for Gold to consolidate while Crude Oil consolidates in an uptrend. The US Dollar Index continues to trend higher while US Treasuries pullback. The Shanghai Composite looks to continue in consolidation while Emerging Markets trend lower but are at support.

The Volatility Index looks to at moderate levels making things more difficult for equities to improve. Their charts remain mixed with the SPY and QQQ strong with digestive pullbacks on the longer timeframe, but in downtrends on the shorter timeframe. The IWM remains in its long sideways consolidation. Use this information as you prepare for the coming week and trad’em well.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

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.

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