Occidental Has Gone Nowhere for a Long Time
Occidental Petroleum shot to prominence in early 2022 as investors embraced inflationary stocks. But it’s gone nowhere since and may be at risk of getting sold.
The main pattern on today’s chart is the pair of converging trendlines. Falling resistance began last November and rising support started in June. Prices are stuck in the narrowing range, with the potential catalyst of earnings tomorrow afternoon. This big event could potentially inject volatility back into the chart.
Next you have the 50- and 200-day simple moving averages (SMAs). While the 50-day SMA is above the 200-day SMA, they give little clear sense of direction or trend. That could mean OXY is neutral over the intermediate and longer terms. If it was bullish and is now neutral, could the pendulum keep swinging toward bearish?
Third, TradeStation data shows energy is the worst-performing sector so far in the fourth quarter after leading in Q3. The most recent economic data has also been non-inflationary -- at the same time that U.S. domestic oil production shoots to record highs.
Finally, consider the chart below of
SEDG
SolarEdge Technologies. It had a similar triangle pattern and sideways movement before plunging on weak results in August.
SEDG’s decline accelerated after breaking its 52-week low. This could keep attention on OXY’s 52-week low from March. If the oil driller behaves similarly to peers like
XOM
Exxon Mobil and
CVX
Chevron after its results, a breakdown could be in the cards.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com/important-information.
The main pattern on today’s chart is the pair of converging trendlines. Falling resistance began last November and rising support started in June. Prices are stuck in the narrowing range, with the potential catalyst of earnings tomorrow afternoon. This big event could potentially inject volatility back into the chart.
Next you have the 50- and 200-day simple moving averages (SMAs). While the 50-day SMA is above the 200-day SMA, they give little clear sense of direction or trend. That could mean OXY is neutral over the intermediate and longer terms. If it was bullish and is now neutral, could the pendulum keep swinging toward bearish?
Third, TradeStation data shows energy is the worst-performing sector so far in the fourth quarter after leading in Q3. The most recent economic data has also been non-inflationary -- at the same time that U.S. domestic oil production shoots to record highs.
Finally, consider the chart below of
SEDG
SolarEdge Technologies. It had a similar triangle pattern and sideways movement before plunging on weak results in August. SEDG’s decline accelerated after breaking its 52-week low. This could keep attention on OXY’s 52-week low from March. If the oil driller behaves similarly to peers like
XOM
Exxon Mobil and
CVX
Chevron after its results, a breakdown could be in the cards.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com/important-information.