With oil prices gushing higher, keep an eye on Chevron Corp. (CVX). Not only is it oversold at double bottom support – with over-extensions on RSI, MACD, and Williams’ %R – the company just hiked its share buyback program to $17.5 billion.
“It also raised its share buyback guidance to a range between $10 billion and $20 billion per year. It was able to do so because it expects annual free cash flow growth of more than 10% with oil prices at $60 a barrel. It reaffirmed that it expects to increase production by 3% a year on average through 2027,” according to Barron’s.
Currently trading at $162.82, we’d like to see CVX race back to $172 initially. Longer-term, we’d like to see it run back to $187 a share.