Chevron (CVX) shares extended gains on Jan. 5 as investors treated President Donald Trump’s administration’s strike on Venezuela as an opportunity for U.S. oil companies. Monday’s price action confirmed CVX’s break above its major resistance (100-day moving average) at the $154 level,

Chevron (CVX) in focus amid Venezuela’s regime change: see Quant ratings, analyst buy calls, and $172 price target upside—get the latest stock outlook now.

Chevron Corp CVX is one of several oil stocks trading higher Monday as investors digest the latest global headline that the U.S. completed a military strike on Venezuela and captured President Nicolás Maduro.

Chevron is the last U.S. oil major still operating in Venezuela, having maintained a continuous presence in the country since the early 20th century.

Chevron reported $12.8 billion in net profit over the last 12 months, and generated even more positive free cash flow -- $15.4 billion. As a result, while Chevron's stock trades for a hefty 24.5 times earnings, it is cheaper when valued on FCF -- only 20.4 times.

Chevron Corporation (CVX) shares are trading higher but there is a chance they find resistance around the $169 level.

The second-largest U.S. oil company, which kept pumping oil in the country after others left, could find it relatively easy to expand its operations if the political conditions there improve.