OCCIDENTAL PETROLEUM CORP is showing promising signs of setting up for a breakout.

OCCIDENTAL PETROLEUM CORP (NYSE:OXY) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NYSE:OXY.

What is the technical picture of NYSE:OXY telling us.

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

Taking everything into account, OXY scores 8 out of 10 in our technical rating. Although OXY is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• The long and short term trends are both positive. This is looking good!
• In the last month OXY has a been trading in the 58.97 - 65.07 range, which is quite wide. It is currently trading near the high of this range.
• When compared to the yearly performance of all other stocks, OXY outperforms 61% of them, which is more or less in line with the market.
• OXY is part of the Oil, Gas & Consumable Fuels industry. There are 218 other stocks in this industry, OXY did better than 44% of them.
• OXY is currently trading in the middle of its 52 week range. The S&P500 Index however is trading in the upper part of its 52 week range, so OXY is lagging the market slightly.

Check the latest full technical report of OXY for a complete technical analysis.

How does the Setup look for NYSE:OXY

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NYSE:OXY currently holds a 10 as its setup rating, suggesting a particular level of consolidation in the stock.

Besides having an excellent technical rating, OXY also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 63.74. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 63.71, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for OXY in the last couple of days, which is a good sign. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading setups like NYSE:OXY

To potentially initiate a trade, it is common practice to wait for the stock to break out of the consolidation zone. This breakout signifies a potential upward movement, and traders may enter the stock at that point. Conversely, if the stock falls back below the consolidation zone, it may be sold at a loss.

Of course, there are many ways to trade or not trade NYSE:OXY and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

More breakout setups can be found in our Breakout screener.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.