$CVX

Is it a false breakout or a healthy retest?

CVX rose above $4.10 but faced quick rejection near $4.20, and is now pulling back to retest the breakout area near $4.00. This pullback could either be setting up for another rise or the beginning of a deeper decline.

Key levels to watch

Resistance:

• $4.10 – The rejection area for the day

• $4.20 – The local peak and breakout boundary

Support:

• $4.00 – The breakout retest area

• $3.90 – The previous consolidation floor

Potential moves

• Bullish case: Holding the $4.00 level may confirm a successful retest, with a bounce towards $4.20 or higher.

• Bearish case: Losing $3.90 could lead to a deeper correction in the $3.80–$3.75 range.

Declining trading volume

— Bulls need strong demand near $4.00 to regain momentum.