OXY closes higher for the 2nd day in a row
Occidental Petroleum Corporation (OXY) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, OXY ended the month 41.31% higher at 18.30 after gaining $0.44 (2.46%) today, outperforming the S&P 500 (1.54%). Trading up to $0.50 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Monday's high at 18.01, the stock confirmed its breakout through the previous session high after trading up to $0.34 above it intraday.
Daily Candlestick Chart (OXY as at Jun 30, 2020):
Tuesday's trading range has been $1.08 (6.08%), that's below the last trading month's daily average range of $1.56. 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. Prices continued to consolidate within a tight trading range between 17.27 and 19.32 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Even with a weak opening Occidental Petroleum managed to close above the prior day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on June 15th, OXY gained 6.51% on the following trading day.
The share found buyers again today around 17.27 for the third trading day in a row after having found demand at 17.34 in the previous session and at 17.35 two days ago.
OXY shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior two Lows" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Occidental Petroleum. Out of 92 times, OXY closed lower 60.87% 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 50.00% with an average market move of 0.78%.