Chevron Corporation : Technical rebound opportunity
By Alexandre Nutte
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
$105.35 | $111.2 | $102.2 | +5.55% |
From a fundamental viewpoint, the company is trading at a relatively low level compared to its historical benchmark. The enterprise value is estimated at 0.72 time the revenue for the curent exercise and the PER is 8.2x. Analysts polled by Thomson Reuters’ consensus has recently upgraded the earning per share revisions from $12.52 to $12.85.
With the repeated failure of the USD 111.2 mid-term resistance crossing, the stock has fallen, forming several gaps. Now, the share returns to its USD 105 short-term support, a convergent point with 100-days moving average.
In this case, investors could take a long position at USD 105 to target USD 111.2 in order to fill the gaps. However, a stop-loss will be fixed at USD 102.