Should you pick up Chevron Corp (USA Stocks:CVX) based on current technical indicators?

The average rating for Chevron Corp's stock is 'Buy', as determined by 19 analysts. Is this consensus based on technical analysis? It's important to understand that traditional technical analysis typically employs the use of price momentum, patterns, and trends by examining historical prices. The goal is to identify signals based on market sentiment towards Chevron Corp, which reflects investors' perception of the company's future value. Let's delve into a few aspects of Chevron's technical analysis.

Main Considerations

Chevron Corp (CVX) has shown a slight positive price change of 0.46, indicating potential for a bullish surge. However, investors should note the high short ratio of 4.39 and a significant increase in shares short from 37M to 43.8M in the prior month, which could indicate a bearish sentiment among investors. Despite this, the company's open price of 147.43 is close to its 52-week high of 169.92, suggesting that it may still have room for growth.
Published over six months ago
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Reviewed by Raphi Shpitalnik

Chevron Corp (CVX), a leading player in the Integrated Oil & Gas industry, has been showing promising technicals that could indicate a bullish surge in the coming month. With a 52-week high of $169.92 and a robust operating income of $36.4B, the company's financial health appears strong. The stock's Beta of 1.113 suggests it's slightly more volatile than the market, potentially offering higher returns. The analyst overall consensus labels CVX as a 'Buy', with an estimated target price of $178.06, indicating a potential upside. However, investors should also consider the possible downside price of $153.61. With a PE ratio of 10.94, the stock is reasonably valued, and the daily balance of power at 0.184 suggests a slight bullish bias. While some of us are enthusiastic about the oil, gas, and consumable fuels sector, it's prudent to delve deeper into Chevron Corp to gain a clearer understanding of its potential. As anticipated, Chevron Corp is beginning to reaffirm its inherent potential as investors grow increasingly confident in its future prospects. The returns on the market and those on Chevron Corp have shown a slight correlation over the past few months. The company's robust fundamental indicators may also hint at potential long-term gains for Chevron investors. Chevron Corp is set to announce its earnings today, with the next financial report expected on April 26, 2024.
Using predictive technical analysis, we can analyze different prices and returns patterns and diagnose historical swings to determine the real value of Chevron Corp. In general, sophisticated investors focus on analyzing Chevron Corp stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Chevron Corp's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Chevron Corp's intrinsic value. In addition to deriving basic predictive indicators for Chevron Corp, many experienced traders also check how macroeconomic factors affect Chevron Corp price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Chevron Corp's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.

How does Chevron Stands against Peers?

Analyzing Chevron Corp competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to Chevron Corp across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be. Check out Chevron Corp Competition Details

Chevron Corp Gross Profit

Chevron Corp Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Chevron Corp previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Chevron Corp Gross Profit growth over the last 10 years. Please check Chevron Corp's gross profit and other fundamental indicators for more details.

Closer look at Chevron Corp Standard Deviation

Chevron Corp has current Standard Deviation of 1.18. The Standard Deviation is a measure of how spread out the prices or returns of an asset are on average. It is the most widely used risk indicator in the field of investing and finance. Standard Deviation is commonly used to measure confidence in statistical conclusions regarding certain equity instruments or portfolios of equities.
Standard deviation is applied to the annual rate of return of an investment to measure the investment's volatility. Standard deviation is also known as historical volatility and is used by investors as a gauge for the amount of expected market volatility. A large standard deviation usually indicates that the data points are far from the mean and a small standard deviation indicates that they are clustered closely around the mean.

Standard Deviation

=

SQRT(V)

 = 
1.18
SQRT = Square root notation
V =   Variance of Chevron Corp returns
Let's now compare Chevron Corp Standard Deviation to its closest peers:
CVX
KO
BA
HD
CSCO
CVX1.1800528381839723
KO0.74
BA2.38
HD1.25
CSCO1.55
As Warren Buffet once wisely noted, be fearful when others are greedy and greedy when others are fearful.
This sentiment may be applicable to Chevron Corp (CVX), a leading player in the Oil & Gas Integrated industry. Despite a recent dip, with a 50-day moving average of $146.46 compared to its current typical price of $147.81, the stock shows potential for a bullish surge. The Wall Street target price stands at a promising $176.17, indicating a potential upside of 1.99. Furthermore, Chevron's strong fundamentals, including a net income of $25.55 billion and operating income of $36.4 billion, suggest a robust financial position. However, investors should be mindful of the company's downside deviation of 1.17 and a semi variance of 1.19, indicating potential risk. In conclusion, while Chevron Corp presents an attractive opportunity, it is essential to balance the potential rewards with the inherent risks. .

Will Chevron pull back in March 2024?

The coefficient of variation for Chevron Corp has currently soared to over 2709.1, signifying a substantial level of volatility and risk associated with the stock. This increased volatility, along with other market factors, could potentially trigger a decline in the company's stock price in March 2024. Investors are advised to exercise caution and closely monitor the stock's performance and market trends before making any investment decisions. As of February 2nd, Chevron Corp displays a risk-adjusted performance of 0.0264, and a Mean Deviation of 0.8664. Chevron Corp's technical analysis provides a methodology to utilize historical prices and volume patterns to predict a pattern that approximates the direction of the company's future prices. In other words, this information can be used to determine if the company will indeed mirror its model of historical prices and volume momentum, or if the prices will eventually revert. We were able to interpolate and analyze data for nineteen technical drivers for Chevron Corp, which can be compared to its competitors. Please verify Chevron Corp's market risk-adjusted performance, variance, as well as the relationship between the variance and potential upside to determine if Chevron Corp is priced correctly, given that the market reflects its regular price of 147.89 per share. Considering that Chevron Corp has a Jensen Alpha of -0.15, we recommend you to validate Chevron Corp's current market performance to ensure the company can sustain itself in the future.

Our Conclusion on Chevron Corp

When is the right time to buy or sell Chevron Corp? Buying stocks such as Chevron Corp isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
In closing, as of the 2nd of February 2024, our analysis shows that Chevron Corp almost mirrors the market. The company is undervalued and projects very low chance of distress for the next 2 years. Our present 90 days 'Buy-vs-Sell' recommendation on the company is Strong Buy.

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Chevron Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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