Though the most prominent of Warren Buffett’s stocks – Apple (NASDAQ: AAPL) – has been doing poorly in 2024, the Oracle of Omaha’s portfolio still represents an exceptionally rich vein of mostly blue-chip stocks.
One company that has emerged, time and time again, in 2024 as one of his strongest picks has been the oil and gas giant – Chevron (NYSE: CVX) – which, by April 18, apparently has a trifecta of powerful factors on its side.
For starters, Chevron not only operates in a highly strategically important industry but also has an exceptionally extensive business network that includes overseas and U.S. operations – primarily in the rich Permian Basin.
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The oil company is also in a unique position to benefit from the current geopolitical instability as deescalation is likely to be beneficial for it due to increased logistical safety and cheapness, and escalation is likely to be beneficial due to the scarcity it would cause.
Finally, technical analysis (TA) reveals that Chevron’s recent stock market performance also hints toward greater things to come.
Technical analysis gives strong buy signal for CVX stock
In addition to its many business strengths, the stock chart for Chevron recently flashed a Golden Cross for the first time since October 2021.
A Golden Cross chart pattern is formed when a short-term moving average rises above a long-term moving average. It usually signals that a significant bull run is about to start, and – in Chevron’s case – the last time it occurred, it led to a 60% rally between late 2021 and mid-2022 and resulted in maintained high prices, albeit with significant volatility.
Additional technical analysis, as retrieved from TradingView on April 18, is also broadly bullish. It is noteworthy, however, that oscillators remain firmly on ‘neutral’ regardless of whether they are based on the 24-hour, 7 or 30-day charts.
It is also interesting that, when the last 24 hours of trading are analyzed, both the overall rating and the moving averages – which are bullish in the other time frames – turn neutral.
CVX stock price chart
Should the Golden Cross truly yield a major rally, it would represent a substantial change from the current trend. Indeed, while CVX shares are in the green year-to-date (YTD) – by 4.24% – their trading has been highly volatile and uncertain.
A bull run would stand in even more stark contrast to the more recent performance of the fossil fuel giant, as its shares have fallen 0.51% in the last 30 days and are down 4.10% on the weekly chart.
Chevron price today stands at $155.83 after the stock rose 0.08% in Wednesday trading.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
