Occidental Petroleum Continues to Target Higher Prices

Occidental Petroleum (OXY) is making a new 52-week high Monday as crude oil futures resume their rise. In our February 24 review of OXY and the VanEck Oil Services ETF  (OIH)  , we were bullish with an $87 price target on the Point and Figure chart. With crude oil futures edging back towards their early March zenith another look at OXY seems like a good idea.

In this daily bar chart of OXY, below, we can see that prices are breaking out on the upside from a 2-1/2 sideways consolidation pattern. Prices trade above the rising 50-day moving average line and above the rising 200-day line.

The On-Balance-Volume (OBV) has been strong this year and is at a new high to confirm the move up. The Moving Average Convergence Divergence (MACD) oscillator is crossing to the upside for a new outright buy signal.

In this weekly Japanese candlestick chart of OXY, below, we see a positive picture. Prices are in an uptrend above the rising 40-week moving average line. The most recent candles show a long white (bullish) candle followed by a tentative hanging man pattern. Normally a hanging man is bearish but continued price strength this week refreshes the uptrend.

The weekly OBV line shows gains from October 2020. The MACD oscillator has narrowed a little but remains in a bullish alignment.

In this daily Point and Figure chart of OXY, below, we can see an $88 price target – a dollar higher from our last review.

In this weekly Point and Figure chart of OXY, below, we used a five box reversal filter. Here the software yields a price target in the $122 area.

Bottom line strategy: Our OXY recommendation is working out nicely. Too bad so many people are paying for our investment results at the gas pump. Continue to hold your purchases of OXY. Raise sell stops to $54. $87-$88 is our first price target and $122 is our longer-term objective.