Flat trading for Chevron stock as price stabilizes near $171.78 support

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Chevron slips 0.17% to $173.35 today

Highlights

Chevron secured a 20-year contract with Microsoft to supply natural gas power for a $7 billion West Texas data center campus.
This deal ensures long-term electricity demand for Chevron’s subsidiary, which will build a dedicated power facility to support Microsoft’s data center expansion.
Chevron's stock faces sustained selling pressure with weak momentum, trading between $166.12 and $180.58, and indicators point to a higher probability of further downside.

Long-term energy contract with Microsoft secures demand amid selling pressure

Chevron has signed a 20-year agreement with Microsoft to supply natural gas-fired electricity for a planned $7 billion data center campus in West Texas, according to Seekingalpha. This arrangement secures a long-term demand stream for Chevron's subsidiary, which will develop a dedicated co-located power facility, as reported by Businesswire. The partnership is set to deliver reliable energy for Microsoft's growing data center operations, Financialpost reported, though price action has remained under broader selling pressure.

Oversold momentum builds as price tests major technical boundaries

On the hourly chart, CVX has key technical levels at MA-20 ($177.03), MA-50 ($182.79), and MA-200 ($171.78), with the Ichimoku Kijun at $176.84 acting as immediate resistance. Momentum indicators show MACD and ADX in a selling environment, while RSI is at 25.05, and both CCI and BBP confirm oversold conditions. Stoch RSI and Awesome Oscillator are neutral, indicating selling strength but some early signals of exhaustion among oscillators.

Downside risk elevated as support break looms despite exhaustion signals

In the short term, CVX is likely to fluctuate within a typical volatility band of $166.12 to $180.58. A bullish breakout above resistance could open the way for further gains, but the probability currently leans toward a downward scenario, with a 76% chance of further losses if support breaks. Price scenarios in the coming days should account for ongoing downside risk balanced against early signs of technical exhaustion.

Anton Kharitonov, expert at Traders Union, sees Chevron’s technical outlook remaining weak despite positive newsflow from the Microsoft energy supply deal. He notes that selling momentum dominates and oversold signals are only just beginning to emerge. Critical support around $171.78 is key, and further downside risk persists unless this level is reclaimed. "I remain cautious on CVX in the short term, as the chart still points to more losses if support fails to hold."

Previously it was reported that Chevron secured a long-term agreement to supply natural gas-fired power for Microsoft's expanding data center infrastructure in West Texas, highlighting the industry's strategic response to AI-driven energy demand. The latest technical setup in CVX stock introduces additional near-term downside risk, making continued vigilance around its long-term trend support crucial for traders navigating this volatile environment.

Source of Data: CVX Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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