Weaker technical forecast for Occidental Petroleum Corporation as stock downgraded to Hold/Accumulate.
(Updated on May 27, 2022)
Buy or Hold candidate since 2022-05-11 Gain 17.90% PDF
The Occidental Petroleum Corporation stock price gained 3.20% on the last trading day (Friday, 27th May 2022), rising from $68.66 to $70.86. , and has now gained 4 days in a row. It will be exciting to see whether it manages to continue gaining or take a minor break for the next few days. During the day the stock fluctuated 5.23% from a day low at $67.74 to a day high of $71.28. The price has risen in 6 of the last 10 days and is up by 10.58% over the past 2 weeks. Volume fell on the last day by -2 million shares and in total, 21 million shares were bought and sold for approximately $1.48 billion. You should take into consideration that falling volume on higher prices causes divergence and may be an early warning about possible changes over the next couple of days.
The stock has broken the wide and strong rising the short-term trend up and an even stronger rate of rising is indicated. For any reaction back there will now be support on the roof on the current trend broken at $70.76, a level that may pose a second chance to hit a runner. According to fan-theory $82.00 will be the next possible trend-top level and thereby pose a resistance level that may not be broken at the first attempt.
Signals & Forecast
The Occidental Petroleum Corporation stock holds buy signals from both short and long-term moving averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $66.23 and $61.28. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Monday, May 09, 2022, and so far it has risen 22.51%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The stock should be watched closely.
Support, Risk & Stop-loss
On the downside, the stock finds support just below today's level from accumulated volume at $58.13 and $57.50. There is natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, Occidental Petroleum Corporation finds support just below today's level at $58.13. If this is broken, then the next support from accumulated volume will be at $57.50 and $56.15.
This stock has average movements during the day and with good trading volume, the risk is considered to be medium. During the last day, the stock moved $3.54 between high and low, or 5.23%. For the last week, the stock has had a daily average volatility of 4.45%.
The Occidental Petroleum Corporation stock is extremely overbought on RSI14 (76). Normally this may pose a good selling opportunity but since the stock has broken the trend up, the chance for a major correction due to high RSI is very small as the stock will find support at the trend broken.
Our recommended stop-loss: $68.75 (-2.98%) (This stock has medium daily movements and this gives medium risk. The RSI14 is 76 and this increases the risk substantially. There is a buy signal from a pivot bottom found 14 days ago.)
Trading Expectations For The Upcoming Trading Day Of Tuesday 31st
For the upcoming trading day on Tuesday 31st we expect Occidental Petroleum Corporation to open at $69.96, and during day (based on 14 day Average True Range), to move between $67.28 and $74.44, which gives a possible trading interval of +/-$3.58 (+/-5.05%) up or down from last closing price. If Occidental Petroleum Corporation takes out the full calculated possible swing range there will be an estimated 10.10% move between the lowest and the highest trading price during the day.
With no resistance above and support from accumulated volume @ $12.73 (17.97%) our system find the risk reward attractive.
Is Occidental Petroleum Corporation stock A Buy?
Occidental Petroleum Corporation holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Strong Buy to a Hold/Accumulate candidate.
Current score: 0.000
Zero in score indicates that our system is expecting high volatility and risk for the following trading day. Given the latest developments, we cannot determine the next direction as it may go both ways.Hold/Accumulate Downgraded
Predicted Opening Price for Occidental Petroleum Corporation of Tuesday, May 31, 2022
The predicted opening price is based on yesterday's movements between high, low, and the closing price.
|Fair opening price May 31, 2022||Current price|
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