Occidental Petroleum Corp. stayed in a trading range – mostly between $75 (U.S.) and $92 for about one year and then in another range between $85 and $99 thereafter (dashed lines). This price action produced a bullish technical pattern known as a Duplex Horizontal formation. The recent rise above $100 signalled bullish investor sentiment and the start of a new major up-leg.
Technical indicators including the 40-week moving average (40wMA) and the MACD (lower panel) confirm the bullish status. Only a sustained decline below $95-$96 would suggest additional base-building is required.
Point & Figure measurements provide targets of $114 and $124. Higher targets are visible.
Monica Rizk is the senior technical analyst for Phases & Cycles Inc. (www.phases-cycles.com). Ron Meisels is a contributor to the www.NA-marketletter.com website and Tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.