OXY unable to break through key resistance level
Occidental Petroleum Corporation (OXY) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, OXY ended Thursday at 12.83 gaining $0.83 (6.92%), outperforming the S&P 500 (6.24%). Closing above Wednesday's high at 12.64, the share confirmed its breakout through the previous session high after trading up to $2.65 above it intraday.
Daily Candlestick Chart (OXY as at Mar 26, 2020):
Thursday's trading range has been $3.29 (27.3%), that's slightly above the last trading month's daily average range of $2.57. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for OXY.
Unable to break through the key technical resistance level at 14.84 (R1), the stock closed below it after spiking up to 15.29 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. When prices bounced off a significant resistance level the last time on March 20th, OXY lost -5.28% on the following trading day.
Although Occidental Petroleum is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for Occidental Petroleum. Out of 416 times, OXY closed lower 55.05% 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 52.16% with an average market move of -0.50%.