On Friday, before market, Chevron (CVX) is anticipated to report second quarter LPS of $0.90 compared to an EPS of $2.27 a year ago on revenue of approximately $20.7B vs. $38.9B last year. Chevron is an energy company with exploration, production, and refining operations worldwide, and on July 30th, the company announced a four-year agreement with Algonquin Power & Utilities (AQN) to co-develop renewable power projects globally to provide electricity to Chevron's strategic assets.
Looking at a daily chart, Chevron's stock price appears to be forming a downward channel that began developing in early-June after price peeked at just over $100.00. The RSI also appears to be forming a downward channel. The price of crude oil broke below its 20-day moving average today and touched its 50-day moving average for the first time in this rally that began in late-April. Also, the rising infection rate of COVID-19 globally could spur another series of travel bans and country lockdowns, adding to the bearish sentiment on energy markets. Chevron's stock price will likely continue to descend to its $82.50 support level. If price breaks below $82.50, it will probably continue falling to $78.50. If price can manage to rebound and get above its upper trend line, we could see a push to $92.75 or even $97.50. However, if the socioeconomic situation continues to worsen, it is more likely that energy companies will fall with the price of oil for the second time this year.
Source: GAIN Capital, TradingView
From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.