Chevron Corporation (NYSE:CVX) at ‘Overbought’ As Indicated by Its RSI(14)

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Chevron Corporation (NYSE:CVX) is at an overbought level with a 14-day RSI of 81.05.

The Relative Strength Index (RSI) is a very common technical indicator used to ascertain strengthening and weakening momentum in price action. An RSI above 70 is considered overbought and stocks are considered oversold at levels under 30. Overbought is a technical condition that occurs when price momentum is considered too high and may be susceptible to a decline.

Volatility

Chevron Corporation’s stock has a beta of 1.22 meaning it is higher in volatility than the market overall which by definition has a beta of 1. Stocks with beta’s lower than 1 are considered to be less risky than the market while those with a higher beta are more risky than the market.

The stock’s Average True Range (ATR) is currently 1.37. The ATR is a short term indicator of volatility. It doesn’t indicate direction, just proclivity for motion.

The stock last traded at $116.53 marginally over the 50 day moving average which is $109.87 and a bit higher than the 200 day moving average of $107.14. The 50 day moving average went up by +6.06% and the 200 day average went up by +8.76%.

Short Interest

Traders are feeling more bearish on the company lately if you take a look at the increase in short interest. The stock experienced a rise in short interest of 5.44% as of the latest report on August 31, 2017. Short shares grew from 26,036,506 to 27,452,625 over that period. The days to cover increased to 6.0 and the percentage of shorted shares is 0.01% as of August 31.

Recent Analyst Ratings

On July 21 Citigroup held the company rating at “Buy” but moved up the price target from $110.00 to $118.00. On June 21 the stock rating was downgraded from “Outperform” to “Neutral” in a report issued by Macquarie.

Chevron Corporation also recently announced a dividend which was paid on Monday June 12th, 2017. The dividend payment was $1.080 per share for the quarter or $4.32 annualized. This dividend represents a yield of $3.77. The ex-dividend date was set for Wednesday the 16th of August 2017.

The most current P/E ratio is 37.79 and market capitalization is 220.82B. In the latest earnings report the EPS was $3.08 and is projected to be $3.86 for the current year with 1,895,002,000 shares now outstanding. Analysts expect next quarter’s EPS to be $0.94 with next year’s EPS anticipated to be $4.78.

Company Information

Chevron Corporation (Chevron), launched on January 27, 1926, manages its investments in subsidiaries and affiliates, and provides administrative, financial, management and technology support to the United States and international subsidiaries that engage in integrated energy and chemicals operations. The Company operates through two business segments: Upstream and Downstream. Upstream operations consist primarily of exploring for, developing and producing crude oil and natural gas; liquefaction, transportation and regasification associated with liquefied natural gas (LNG); transporting crude oil by international oil export pipelines; processing, transporting, storage and marketing of natural gas, and a gas-to-liquids plant. Downstream operations consist primarily of refining of crude oil into petroleum products; marketing of crude oil and refined products; transporting of crude oil and refined products by pipeline, marine vessel, motor equipment and rail car, and manufacturing and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives..