Why You Need To Add This Oil Giant To Your Watchlist

As oil prices attempt to make a move higher, one name to watch as the stock moves off a big support level is Chevron (CVX). If price can reclaim that 160 mark, the stock should have a pretty clear path to 165.

For this stock to really get going, we would need to see real strength not just in the stock itself, but oil and the rest of the sector more broadly. The reason why this stock is the oil name to make it across our screen is because of that move after coming down and testing that lower level of support at 150.

As you might also be able to see in the video and on the chart, we have a moving average that could also be looked at as a support level now. This is by no means a reason to take a bullish trade, but if we are seeing this confluence, other traders are seeing it, as well. This could be used as one piece to our confirmation puzzle.

Remember, successful traders do not just look at a chart for 15 minutes and decide to enter a trade. There needs to always be more than one confirmation for why you decide to take on a particular trade. In this case, oil prices showing strength, hold above the 50-day simple moving average, and with some good volume and price action to the upside on a higher time frame would all be used as confirmations.

Keep your eyes on oil prices and the rest of the sector to see if price wants to move in our direction. If the trade becomes invalid, move on to the next stock or setup you’re watching. If you see nothing out there you like, then simply refrain from trading. Again, our job is not only to make money, but keep it as well.

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