Is Chevron stock now a good buy after the latest gains?

Chevron Corporation (NYSE:CVX) buyers have defended the $138 support. The stock is once again proving resilience, posting more than 10% gains in just five days. That comes after reports that OPEC+ were set for output cuts to tame falling oil prices.

Chevron, which reported $68.76 billion or £60.32 billion in revenue, has been benefiting from elevated oil prices. The revenue topped estimates of $57.69 billion or £50.6 billion. The EPS beat estimates by $0.80, underlining a solid year. 

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If we turn to analyst expectations, the stock has a moderate buy rating. Ten analysts tracked by TipRanks have a moderate buy, while 4 assign a hold rating. Only one has a sell. The average projected price is $176.33, representing an upside of 12.36% from the current level.

However, investing in Chevron for its fundamentals alone could be far-fetched. For a stock that got buoyed by rising oil prices, a recession downturn could catch buyers by surprise. The latest decline to the $138 zone underlines price expectations around lower oil prices. Will the OPEC+ cut output on October 5? 

Chevron stock price movement amid recovery from oversold $138 level

Source – TradingView

Technically, Chevron stock has been claiming lower highs, aligning with the $138 support. That has resulted in the formation of a descending trendline. Bulls must overcome the bear trendline if Chevron is to post further gains. A break above the trendline could see the stock head to $164.

Is it the right time to buy Chevron?

This article finds it worth investing in Chevron at better valuations. Although a breakout above the descending trendline is possible, the risk-reward ratio could be unconvincing. 

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Source: https://invezz.com/news/2022/10/04/is-chevron-stock-now-a-good-buy-after-the-latest-gains/