CVX Technical Analysis: 50-SMA Opposes Trendline Breakout Rally
Table of contents
Key technical points:
Past Performance of CVX
The CVX price Action shows a double-bottom breakout rally surpassing the long-coming resistance trendline. Additionally, the bull run jumps above the $5.45 resistance level. But the breakout rally took a lateral shift after facing opposition from the 50 SMA. However, this might come as a retest of the double bottom breakout which may shortly lead to a post-retest reversal and exceed the 50 SMA.
Source- Tradingview
CVX Technical Analysis
The CVX price Chart shows a drastic decrease in the trading volume after the breakout candle adding points to the post-retest reversal theory. Hence, traders can expect the 50 SMA breakout as a lucrative entry point to ride the trend with the potential of a 40% price jump. The DM indicator shows a crossover event where the DI airlines regain the bullish alignment and gradually increase the spread. Moreover, the index line shows a bullish turnaround, with the crossover indicating an increase in the underlying trend momentum.
The RSI indicator shows a remarkable increase in the underlying bullishness as it maintains an uptrend in the nearly overbought zone. Hence, the indicator shows a high likelihood of an uptrend continuing above the opposing SMA. In a nutshell, the CVX technical analysis displays a high likelihood of buyers regaining the trend control and exceeding the opposing SMA.
Upcoming Trend
If the buyers are able to regain trend control, the CVX prices will skyrocket and reach the overhead resistance level at $9. Conversely, a bearish turnaround in the consolidation range will breach $5.45 to retest the broken trendline close to $4.
Resistance Levels: $6.5 and $9
Support Levels: $5.45 and $5