Dow stock Chevron is in a correction, and that may be a buying opportunity

Shares of energy giant Chevron are down over 14 percent from their recent high, but one strategist sees the potential for a bounce.

Matt Maley, equity strategist at Miller Tabak, told CNBC's "Trading Nation" that although Chevron has fallen into correction territory, the stock may be poised for a comeback so long as its underlying commodity, crude oil, holds some of its recent gains. Here are his reasons why.

• Chevron, down over 14 percent from its January highs, has diverged over the last two months from crude oil, to which it is typically closely tied. Crude is only barely negative in the same time.

• In the near term, should crude oil hold onto its recent bounce near the $60 per barrel level, Chevron should be poised to see a similar rebound.

• Chevron may be one name for investors to consider as uncertainties like tech regulation, the Federal Reserve's tightening path and widening credit spreads mount in the marketplace.

• The energy giant is a relatively high dividend-yielding stock, with a yield of nearly 4 percent, which may benefit investors as they wait for market uncertainties to dissipate.

Bottom line: Chevron shares, though they've fallen into correction territory, may be setting up for a buying opportunity so long as crude oil holds onto some of its recent gains.

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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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