Blue Chip Boosted on BofA Bull Note

CVX is eyeing its fifth-straight month in the red

Deputy Editor
Sep 28, 2020 at 10:36 AM
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Leading Dow stocks today is Chevron Corporation (NYSE:CVX), which is up 3.3% at $74.20 at last check, after BofA Global Research upgraded the stock to "buy" from "neutral." The firm reset expectations of fair value to the long-term strip price for oil, and then factored in how various stocks in the sector have moved already. The brokerage also noted that they don't expect the market to discount an upside case until the inventory overhang unwinds, and added a price-target cut to $96 from $101. Coming into today, 10 of the 16 covering analysts sport a "buy" or better rating on CVX, while the remaining five at a "hold" or worse.

On the charts, today's pop has CVX contending with the 10-day moving average, a trendline that has served as overhead pressure since mid-August, as the stock fell steadily lower. The equity is eyeing its fifth-straight month in the red, though it still sports a 38.3% year-to-date deficit. Today's positive price action also comes amid CVX sitting firmly in "oversold" territory, based on its 14-day Relative Strength Index (RSI) of 24, meaning a short-term bounce may be in the cards. 

The options pits are leaning on the side of bulls as well. This is per Chevron stock's 10-day call/put volume ratio of 2.58 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than 79% of readings from the past year, meaning calls are picked up at a faster-than-usual rate. 


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