Chevron (CVX) and other energy companies saw selling after hitting technical resistance on Wednesday.
Energy companies like Chevron have been battling with sellers over the last six months as several of the world’s largest economies face rising possibility of slipping into recessions.
Just yesterday, the central bank of China unveiled aggressive moves to stimulate the second largest economy in the world. That move gave a short-term boost to the price of crude oil, but the 6-month trend continue to target lower prices.
Chevron and Exxon Mobile – the two largest oil companies in the world – have been mired in a short-term bearish trend as both stocks have faced pressure from their declining 50-day moving averages.
In Chevron’s case, stock quickly reversed from its highest prices in a month as they collided with their 50-day trendline at $147.
Today’s decline puts CVX is position to immediately challenge it’s bearish 20-day moving average.
The faster moving trendline is often monitored by short-term traders as a “buy/sell” signal.
A cross back below Chevron’s 20-day – currently at $143 – will accelerate the stock’s negative momentum with a short-term target of $135.
Meta (META) Platforms Connect Event kicked off earlier today as the company rolled out new products and developments.
The event kicked off with a showcase of “Meta AI”, which now helps users talk to the Meta Assistant using your voice and photos.
The company also provided details on how their business AIs are serving customers to support and facilitate commerce through Meta’s platforms.
Among the products rolled out were the newest version of Meta Quest and their Ray-Ban Meta glasses.
The Orion AR glasses are touted to be the “most advanced pair of AR glasses ever made. Orion bridges the physical and virtual worlds, putting people at the center so they can be more present, connected and empowered in the world.”
Investors appeared unimpressed with the company’s presentations as Meta shares dropped more than 1% during the event in what appeared to be a “sell the news” push lower.
Over the last two trading weeks, Meta has climbed more than 11% as one of the strongest performers in the Nasdaq 100 (QQQ), signaling that investors expectations may have been high.
Meta’s short- and long-term technical measures indicate that the stock is locked in a strong bull market trend with short-term support residing at $525.
Shares of Ford (F) started the day on the wrong side of the market as Wall Street analysts downgraded the stock.
Analysts at Morgan Stanley dropped their recommendation on Ford from a “buy” to a “Hold”.
The move puts Morgan Stanley in the consensus of Wall Street as 15 of 25 analysts rank the stock a “hold”.
Morgan Stanley also dropped their target price for Ford from $16 to $12.
Ford Shares have been trading in a range between $10 and $12.50 for much of the last two years. The stock broke below its twenty-month moving average in July, signaling that Ford has shifted into a long-term bear market trend.
The shorter view of Ford shares is also bearish.
The stock’s 50-day moving average moved into a bearish trend in early August. Since then, Ford has hit low prices well under $10. That moving average currently sits at $11 as overhead resistance.
The stock closed today at $10.42, just 3.8% above the psychologically significant $10 price.
A break below $10 over the next week would cause sellers to increase their activity on the stock, targeting a 4-6 week move lower to $8.
Ford shares are in a bear market trend with a price target of $8.
