We’re very excited to present our Squeeze Engine, one of the main tools that powers the success of Breakout Multiplier.
News of the American intervention in Venezuela over the weekend sent a shock of volatility through the entire energy complex.
Today’s standout is poised to become one of the biggest beneficiaries of that move:
Chevron $CVX is currently exhibiting a Long-Term Squeeze Score of 96.2.
Here’s what the chart looks like:
Chevron is coiled in a tight, multi-year range—a structural pattern defined by two key anchored VWAPs, one from the COVID low and the other from the all-time high.
Volatility on the Strazza Indicator has compressed near multi-year lows. We’ve already seen similar structural patterns resolve higher across the metals complex.
Now the energy complex appears to be gearing up to follow. Whether breakouts are event-driven or not, positioning to capture sharp, short-term moves using options allows you to ride longer waves more comfortably from a lower cost basis.
Today, we sold a triple in CVX at the open and plan to let the remainder of the position ride risk-free. From here, it is a free ride through March and the pattern hasn’t even resolved.
