Chevron breakout: Is a run to $177 next?

Chevron Corporation (CVX) remains a dominant force in the integrated energy sector, managing the entire oil and gas lifecycle from extraction to retail. On Monday, the stock caught a major tailwind, surging over 5% on more than three times the average daily trading volume. This move was fueled by developing news out of Venezuela—a region where Chevron holds a distinct competitive edge due to its established infrastructure already on the ground.

From a technical perspective, Monday’s price action was significant. The push higher forced an acceleration above a long-term declining trendline that has been in place since the end of 2022. For this breakout to be solidified, we need to see momentum carry into Tuesday, specifically with price closing above Monday’s high. If this happens, the stock will likely test the next major resistance level at $168.96.

Once that resistance is cleared, the breakout is secured. In that scenario, the top of the old declining trendline at $159.84 would flip from resistance to primary support. Any pullbacks to that level should be viewed as buying opportunities. This setup creates a high-probability long trade with a price target of $177.35.

However, caution is still warranted. The situation in Venezuela is fluid and continues to develop. If the stock retreats and closes back under the declining trendline, the current bullish breakout will be negated.