OXY closes lower for the 2nd day in a row
Occidental Petroleum Corporation (OXY) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, OXY finished the week 2.24% higher at 14.13 after edging lower $0.12 (-0.84%) today on low volume, notably underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (OXY as at May 22, 2020):
Friday's trading range has been $0.57 (4.03%), that's far below the last trading month's daily average range of $1.12. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for OXY.
Two candlestick patterns are matching today's price action, the Takuri Line which is known as bullish pattern and one bearish pattern, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on April 30th, OXY lost -8.19% on the following trading day.
Prices are trading close to the key technical resistance level at 14.50 (R1).
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the nearby swing high at 15.16 where further buy stops might get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Takuri Line" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Occidental Petroleum. Out of 68 times, OXY closed lower 57.35% 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 58.82% with an average market move of -2.44%.