Chevron Stocks Surge Amid Increased Oil Prices

Geopolitical unrest is driving oil prices higher, prompting a rise in oil stocks, including Chevron Corporation.

As illustrated in the chart below, Chevron Corporation CVX stands out in today’s market, leading our team of analysts to name it our Stock of the Day.

Market movements are primarily influenced by supply and demand dynamics. Simply put, when these two forces don’t match, prices adjust in search of balance.

For instance, if there are not enough shares available to satisfy all the buy orders, prices rise. Investors eager to buy shares will bid higher to entice sellers back into the market.

Things change, however, when a stock approaches a resistance level.

At resistance, supply surpasses demand. Traders can purchase shares without driving prices up, as sufficient supply exists to meet their needs.

Read Also: Chevron Q3 Earnings: Production Boost By PDC Energy & Permian Basin, Targets $2-$3 Billion In Structural Savings By 2026

The $152.50 mark has served as a significant resistance level for Chevron over the past month.

This situation is not random. The current resistance aligns with a previous support level. Such shifts from support to resistance are frequent in trading due to a phenomenon known as “buyer’s remorse.”

Investors who purchased shares during the June and July support phase felt confident when prices initially rose. However, once that support failed, many reconsidered their investments.

Those regretful buyers decided to sell, but only if they could do so without a loss. Consequently, when Chevron’s stock price recovered, these investors placed sell orders near their initial purchase prices. This influx of sell orders contributed to the formation of resistance at this critical level.

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