With oil prices excessively oversold, it’s time to look at beaten-down oil stocks like Chevron (CVX). Most recently, CVX dropped from about $172.50 to about $155. However, with oil starting to gush higher, CVX should follow.
Plus, if you pull up a two-year chart of CVX, you can see that every time RSI, MACD, and Williams’ %R also get this low, CVX tends to push higher shortly after. In fact, the last time CVX was this low, it would bounce from about $150 to $170. The time before that, CVX bounced from about $140 to $181. And the time before that, it bounced from about $130 to $165. We’re looking for a similar move off oversold levels again this time, too.