CVX Technical Analysis: Increasing Fear Warns Downfall To $6
Table of contents
Key Technical Points:
Past Performance of CVX
The CVX price action shows a bullish failure to exceed the $8 supply zone resulting in a 17% fall within a week to reach the support trendline. However, the lower price rejection candle from the 50-day SMA keeps the market value above the supply trendline. Moreover, the recent overnight growth in demand recreates a bullish engulfing candle to reach the $8 supply zone in an attempt at a bullish breakout.
Source - Tradingview
CVX Technical Analysis
Last night, the CVX price jumped by 7%, undermining the previous week's higher price rejections during the consolidation bear cycle. However, traders should wait for a price action confirmation before taking a bullish trade.
The RSI slope shows growing bearish influence as it declines to reach the halfway line, with the 14-day SMA keeping the reversal in check. Moreover, the MACD and signal lines maintain a bearish alignment with a negative histogram trend. Hence, the technical indicators showcase a growing underlying bearishness.
In a nutshell, the CVX technical analysis displays a high possibility of a support trendline fallout.
Upcoming Trend
If the CVX price breaks above the $8 zone, the breakout rally will test the resistance trendline close to the $10 mark.
However, as the selling pressure grows, the support trendline fallout rally could reach the $5 mark if the buyers at $6 fail to cushion the downtrend.
Resistance Levels: $8 and $10
Support Levels: $6 and $5
