Chevron (NYSE: CVX) retraces on Friday’s trading session at a rate of 1.69%, easing until $90.48 dragged by raising U.S. and China tensions.
The short-term picture of Chevron under the Elliott wave perspective shows in its hourly chart the advance in a complex corrective formation that follows the structure of a double three pattern.
According to the textbook, a double three pattern is a combination of two standard corrective structures connected by a third correction identified as wave X. Generally, the first correction tends to be a zigzag or a flat pattern; the wave X could be any corrective formation. The last structure could be another kind of correction different from the first pattern.
The following corrective structure identified as wave ((c)) corresponds to a flat pattern. This formation presents the characteristic of failure in wave (c) in blue, which carried it to end at $73.33, being above the end of wave (a) that ended at $79.68 per share.
Once the price movement surpassed the trendline that connects the origin of wave (a) with the end of wave (b), Chevron began a new corrective movement identified as wave ((y)), which still is in progress.
Currently, Chevron advances in its wave (b) identified in blue, developing a corrective descending triangle formation. In this context, for the following trading sessions, we expect the completion of the downward sequence corresponding to wave e of Subminuette degree labeled in green. Once the wave (b) finishes and following the breakout over the trendline that links the end of waves (b) and (d), the price will confirm the start or the upward wave (c) in blue.
In conclusion, considering that CVX continues moving in a corrective structure, our preferred long-term positioning remains neutral until its structural series ends.