Right time to sell Chevron

Introduction

Chevron Corp. (CVX) stands out as the being among the largest integrated global corporations, covering 180 countries. Its vertically integrated supply chain includes upstream as well as downstream operations consisting of exploring and producing crude oil and natural gas, refining and then marketing and transporting petroleum as well as petro chemical products respectively. It is also involved in power generation projects and mining projects of several mineral s including coal.

Industry outlook, concerns and Chevron

While studying the industry as well as the Chevron Corporation, I have been able to found a gap between consumption and production capacity which is expected to widen more from now with the demand side for energy exceeding the supply side of them same. Reserves has started to yield lesser outputs, as per the statistics of HIS energy, which claim such case to be applicable nearly 90% of all known energy reserves. In addition to that, the discoveries of new oil fields have slowed down, and studies have revealed that a new groundbreaking discovery of any oil reserve is yet to be made since 2002. These studies can easily provides enough evidence to conclude that the production patterns will only continue to diminish in futures, if dependency is on the existing ones, unless some new discoveries are made, many of the related projects being still in the pipeline, with no reliable or expected date of production start. This usually restricts companies in such industries to organically grow, leaving them with the only financial growth option to merge, horizontally or vertically, with another in the same or related industry.

Recent - Chevron's Pennsylvania natural gas well:

A few days back, Chevron Corp.’s Pennsylvan...

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...hole.

Chevron Corp. Stock Getting Very Oversold

In the recent week, the Chevron Corp. stock can be easily categorized into one that has been oversold trading as low as $111.25 per share. A technical analyst defines an oversold position using the RSI, Relative Strength Index, to measure the momentum on a 0 to 100 scale. A stock will be called oversold, if the RSI falls below 30, and in the case of CVX Stock Analysis, it has already hit 28.1, which by comparison to other in the energy stock is low, the others averaging just above 50. Investor can always assume that the trend is one that will exhaust itself soon, but the analysts see the heavy selling as one that will continue for a few months, unless the Chevron stocks show a positive financial sign such as an increase in revenue, resumption of Gulf of Mexico operations, or some stretch in the margins of fuel products.