Chevron (CVX) and Exxon Mobil  (XOM)  reported quarterly results before the opening bell with muted volatility. Both belong in investor portfolios due to their generous dividend yields of 4.07% and 3.84%, respectively. Be prepared to buy these stocks on weakness to my value levels given the positive weekly chart for the Nymex crude oil futures contract. 

Chevron and Exxon Mobil set their post-election highs of $119.00 and $93.21, respectively, on Jan. 3 and Dec. 13. The energy giants and components of the Dow Jones Industrial Average are in correction territory vs. these highs. They set their post-election lows on July 11 and June 2, respectively. These stocks correlate well to the pattern for oil.  

The Nymex crude oil futures contract is trading just above $49 per barrel this morning. Crude oil set its post-election high of $55.24 on Jan. 3 and set its post-election low of $42.05 on June 21. Oil has been below its 200-week simple moving average since the week of Aug. 22, 2014, and this "reversion to the mean" is now $62.29. Oil's weekly chart will end this week positive with the futures contract above its five-week modified moving average of $46.76. This should help the weekly charts for Chevron and Exxon Mobile.

Weekly Chart for Chevron

Courtesy of MetaStock Xenith

The weekly chart for Chevron ($106.11 on July 27) will end the week positive if the stock closes above its five-week modified moving average at $105.05. Strength above its 200-week simple moving average at $107.01 would be positive for momentum. The 12x3x3 slow stochastic reading is projected to rise to 28.86 this week up from 26.03 on July 21.

If you liked this article you might like

Stocks In Negative Territory as Chances for December Hike Surge

Energy Stocks Lead a Neutral Market Even After Oil Inventories Spike

Energy Takes a Backseat as Crude Oil Stabilizes Under $50

Energy M&A Weekly: More Midstream IPOs Expected in 2017

Here's Where Wall Street Stands