Elliott Wave analysis suggests Chevron (CVX) is extending higher in Wave (V), with bullish momentum intact and further upside potential ahead.
Chevron Corporation (CVX) continues to show strong bullish momentum, with the Elliott Wave structure pointing to further upside as Wave (V) unfolds. In the past, the stock completed a major impulsive Wave III, followed by a corrective Wave IV. This correction took the form of a complex ((W))-((X))-((Y)) structure, which helped reset market conditions before the next bullish phase began. The completion of this correction marked a significant low, providing the foundation for a renewed rally.
At present, price action is advancing within Wave (V), which is expected to take the stock to new highs. The internal wave structure aligns with a five-wave impulsive sequence, reinforcing the strength of the ongoing uptrend. Currently, Wave ((3)) is pushing higher, confirming sustained bullish pressure. However, a temporary pullback in Wave ((4)) may develop before the final leg, Wave ((5)), completes the overall move. This short-term correction would provide traders with an opportunity to position themselves before the next major advance.
Elliott Wave Short-Term Outlook:
On the daily timeframe, Chevron (CVX) seems to have completed a corrective pattern. The structure forms a contracting triangle in Wave (4), labeled A-B-C-D-E. This suggests the correction is over, setting the stage for a bullish breakout. The projected path indicates CVX is starting a new impulsive wave higher. This aligns with the broader Elliott Wave count.
A “Turning Up” tag reinforces the bullish outlook. It signals traders should favor long positions as the next rally begins. The invalidation level stands at $51.48. As long as the price stays above this level, further upside is expected in the coming months.
Source: https://elliottwave-forecast.com/stock-market/chevron-corporation-cvx-poised-gains-wave-v/