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After gapping lower on the bell shares of Chevron (CVX) - Get Free Report are once again holding key support. At midday, shares have rebounded nicely off this solid area and are beginning to show signs that a near-term bottom may be in.

Chevron still has work to do, but investors should be encouraged by today's upside reversal.

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Back in April, Chevron took out a very heavy resistance area on its way to new 2016 highs. The stock pulled back in May before putting in a slightly higher high in June, followed by another new high in July. Before the stock reached the July peak near $107.50, the $98.50 area provided solid support. Another important test occurred after a steep selloff during the second half of July. Once again, the $98.50 area held. This month, despite reaching a fresh five month low on the Sept. 16, Chevron stabilized and remains near a low-risk buy zone.

In the near term, Chevron investors should take on a much more positive view of the action. The stock should now be considered a low-risk buy between $99 and $98. On the downside, a close back below the $96 area would indicate that more downside is ahead. On the upside, an important hurdle will be the $101 area. A takeout of this level would clear last week's high, setting the stage for more upside in the process.

This article is commentary by an independent contributor. At the time of publication, the author was long CVX.