Price action settled above resistance the week of Feb. 28, triggering a long opportunity for Chevron Corporation (CVX).
But what’s more interesting is what transpired just last week.
That’s right… Price action just re-tested the area, which was once resistance and is now considered support.
This is where the power exchange occurred between buyers and sellers.
It’s clear the buyers remain in control.
On the back of an anticipated energy sector rally into later year, Chevron could easily test the $200 handle by year end.
The Buy Signal
The settlement that occurred on the week of Feb. 28 was considered a three to five month buy signal.
If you’re an options trader, I’d be looking at options that expire six to nine months from now as my idea time frame.
But the bigger story here that I wanted to share with you is this…
Can you guess who nailed buying the pandemic dip of this stock?
You guessed it right! Company insiders…
Take a look!
Notice that the most significant purchases by these insiders are right at the pandemic dip.
Since then, they’ve all been booking profits for themselves.
Now, don’t get me wrong… They’ve bought at other points in time.
But the significant “load the boat” was during all the destruction of the pandemic.
Imagine buying this stock at around $70 where the insiders did and be sitting with that position today at approximately $170 just about two years later… not too shabby!
My good friend and expert trader Ross Givens specializes in following and analyzing company insiders.
And insider buys are one of the major components of his new Alpha Stocks research service.
Rules to Live By
“What’s the good of living if you don’t try a few things?” Charles M. Schulz.
Until next time, I wish you a beautiful and blessed day!
Yours In Trading Success,
Anthony Speciale Jr.