TopOptionAlert
$CVX NOV20 235C · still actionable
Zone: $225.15 to $228.33
Invalidation: close under $220.41
Objectives: $240, then $255
The math: up 5.8% to the first objective and 12.5% to the second, against 2.8% risk on the invalidation, better than 4 to 1 to the second
Dear friend, picture a big ship that has been pushing against the same dock gate for days and finally slips through into open water. That is this swing setup. Chevron traded up to 227.13 dollars today after closing at 225.71 dollars on Tuesday, and buyers held the 224.19 dollar low, which tells me the old ceiling near 225 dollars is now being treated like a floor. Earnings on October 30 give the move a real date to work toward, and the November 20 calls carry the idea through that report with room first toward 240 dollars and then 255 dollars if buyers keep pressing. A close under 220.41 dollars would say the breakout failed and you step aside.
P.S. Watch 227.28 dollars first. It was the high on Tuesday, and a close over it would mark a fresh high with buyers still in charge.
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