Is Chevron Breaking Out?

Published on Wednesday, 28 July 2010 18:48 Written by Danny Miller

New York, July 28th (TradersHuddle.com) - Shares of Chevron Corp. (NYSE:CVX) closed the trading session at $75.3 just above calculated resistance at $73.58 moving to what appears to be a new range, as this move will clearly raise the attention of momentum buyers.

Chevron Corporation is an integrated energy company with operations in countries located around the world. The Company produces and transports crude oil and natural gas. Chevron also refines, markets, and distributes fuels as well as is involved in chemical operations, mining operations, power generation and energy services. Chevron, the second largest U.S. energy producer and formerly known as ChevronTexaco, was founded in 1879 and its based in San Ramon, CA.

Chevron's stock was trading in a well defined range with support at $66.83 and resistance at $73.58, given that this range was broken traders will be closely monitoring the stock?s price action for clues of direction.

From a technical perspective it can be expected that previous resistance becomes support, as the new range gets defined, however, given that Chevron's stock is still near the broken resistance level, traders will be focusing on $73.58 to see if the stock holds the breakout without rolling over.