OXY closes lower for the 2nd day in a row
Occidental Petroleum Corporation (OXY) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, OXY finished the week -0.69% lower at 41.60 after losing $0.44 (-1.05%) today on low volume, notably underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (OXY as at Feb 14, 2020):
Friday's trading range has been $0.95 (2.26%), that's slightly below the last trading month's daily average range of $0.97. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for OXY.
After trading as low as 41.29 during the day, the market found support at the 50-day moving average at 41.50. Prices are trading close to the key technical resistance level at 42.45 (R1). After having been unable to move above 42.38 in the prior session, Occidental Petroleum ran into sellers again around the same price level today, missing to move higher than 42.24. The last time this happened on February 6th, OXY lost -0.55% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the close-by swing high at 42.61 where further buy stops might get activated. With prices trading close to this year's low at 39.42, downside momentum could accelerate should the share break out to new lows for the year.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 50" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Occidental Petroleum. Out of 32 times, OXY closed lower 59.38% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 59.38% with an average market move of -0.08%.