S&P 500 Market Outlook: Neutral & Deteriorating
Bearish Trade: CVX $117.70 – Energy
The bearish DailyPlay we chose for Thursday, Jan 9th is Chevron (CVX). CVX is part of the Energy Sector (XLE). XLE has rallied 6.50% higher over the past month but its 1m and 6m trend turned bearish yesterday and recently broke above its $90 resistance level.
Chevron’s 1m and 6m trend turned bearish yesterday and recently broke out below its $118 support level. With a technical score of 3 (out of 10), CVX is a weak stock that will likely continue lower.
As a stop loss, if CVX was to trade above $118 for multiple days, this would invalidate our analysis and suggest cutting losses on the trade.
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