On August 21 we tested and held a setup zone in CVX ($122.26, up $0.04). At the same time…..(pun intended), we had some timing parameters at that low. Specifically the timing was the 100% cycle of the prior decline which had lasted 19 trading days. You can see this time symmetry illustrated on the chart below. Note that the 8/21 low was made exactly 19 trading days down from the late July high.
Now this setup has already triggered and is started to play out, but since we don’t have a meaningful target until the 130.72 area, it’s not too late to look at an entry. At this point, I am stalking a pullback to the last low at the 119.01 area and if such a pullback holds, you can enter the buy side with your risk defined either below the 119.01 swing low OR below the 8/21 low if you want to give it a little more room. If it plays out the way I anticipate, we should head towards that target in the coming weeks.
Since not all setups will play out as desired, don’t forget to use stops or some sort of money management!!