Oil went below 40$ in August for the first time since early 2009. It did try to mount a rally to no avail before collapsing to 26$. During this time Chevron never made new low. That is a call a divergence, a major divergence that is and that is a bullish sign.
Furthermore, since its August low, CVX printed a nice impulse ( the trend ). The ensuing move looks corrective to us. Now CVX appears to be ready to take off to at least 104 where we will have equality between trending waves. If there's more fuel in CVX then 110 is a major resistance where we have the 61.8% retracement of the previous decline and the apex of a bearish triangle where prices often stall.
Only a move below 69.70 will negate this view
Furthermore, since its August low, CVX printed a nice impulse ( the trend ). The ensuing move looks corrective to us. Now CVX appears to be ready to take off to at least 104 where we will have equality between trending waves. If there's more fuel in CVX then 110 is a major resistance where we have the 61.8% retracement of the previous decline and the apex of a bearish triangle where prices often stall.
Only a move below 69.70 will negate this view
