Chevron (CVX) Gives Mixed Read as Traders Try to Keep Winning Streak Alive

January 18, 2013 11:48 AM EST Send to a Friend
Despite Chevron Corp (NYSE: CVX) having slipped into negative territory Friday, all hope may not be lost.

According to market data, Chevron is seeing a $184.2 million positive inflow of funds from traders today, or those taking action on an uptick in the stock. The overall money flow ratio is 6.6 times uptick versus downtick flows.

However, there is a conflict here. The 14-day Money Flow Index is at 81.8 percent, generally an indicator of a stock being overbought. One of the reasons might be recent activity in Chevron's shares. The stock hasn't closed lower since January 8th, a seven-session run higher amounting to five percent upside.

Given Chevron's size, traders might keep this stock on their radar for more pullback. Shares are just 3.3 percent below a new annual high, versus being nearly 20 percent above its annual low of $95.73. In 2013, the stock is up about 6.1 percent.

For those willing to wait, Chevron pays out 90 cents quarterly for an annual yield of 3.2 percent.

At the start of the year, Chevron did produce a "Golden Cross" pattern, with the 20-day SMA crossing and moving above the 200-day SMA. The technical generally hints at momentum and recent activity has proven that to be true. The last time a similar pattern was observed was last July, when Chevron was trading around $105.

Shares are down 0.1 percent on Friday's session.




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