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.