Occidental Petroleum Corporation (NYSE:OXY) has continued to face resistance at the price of $60. Although the stock has been pushing through the resistance, it continues to face significant pressure. Our analysis shows that in due time, the stock will turn the resistance to a new support level.
Occidental Petroleum has been bullish since the market learned of its addition to Berkshire Hathaway’s portfolio. It is also a beneficiary of the ongoing crisis in Ukraine. As oil prices grow, so does the stock.
Are you looking for fast-news, hot-tips and market analysis?
Sign-up for the Invezz newsletter, today.
The stock is set to grow further in the coming months. Various EU members have pledged to cut back oil purchases from Russia. The move would likely result in further appreciation in the prices of oil and gas. Once that happens, the stock will continue to gain value.
Occidental Petroleum faces resistance at $60
Occidental Petroleum is trading at $59.24, just below the resistance level of $60. The share broke through the same resistance level last week to find a high of $65. This week the stock retracted by 8.78%. While the stock remains under pressure, it is likely that it will break out in the coming days to find a new high.
Momentum analysis indicates the stock is trading at an RSI of 63.54, just below the oversold region. An uptick in momentum is expected, and the stock will remain in the oversold region thereafter.
Summary
Occidental Petroleum remains an attractive portfolio target. High oil prices will continue supporting the stock. Price appreciation is projected on expectations of improving financial performance.
Where to buy right now
To invest simply and easily, users need a low-fee broker with a track record of reliability. The following brokers are highly rated, recognised worldwide, and safe to use:
- Etoro, trusted by over 13m users worldwide. Register here >
- Capital.com, simple, easy to use and regulated. Register here >
*Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.
Source: https://invezz.com/news/2022/05/10/hold-occidental-petroleum-as-it-battles-the-60-resistance/