Tight Consolidation in Occidental Petroleum
Occidental Petroleum is the top performing member of the S&P 500 so far this year with a gain of 122 percent. It's drifted in the last few months, but now some interesting patterns may be appearing on the chart again.
First is the tight consolidation at the 50-day and 100-day simple moving averages (SMAs). OXY has remained close to both following its big rally in the first quarter, which may reflect limited selling pressure.
The stock is now back above both SMAs after making higher lows in June and July. Also notice how the troughs form a trend line along with the April low.
This consolidation phase has compressed Bollinger Band Width. Such a volatility squeeze may create the potential for prices to expand -- especially after closing at the top of the recent range.
Finally, the 8-day exponential moving average (EMA) is back above the 21-day EMA and MACD is rising again. Those patterns may suggest short-term momentum is turning bullish again.
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First is the tight consolidation at the 50-day and 100-day simple moving averages (SMAs). OXY has remained close to both following its big rally in the first quarter, which may reflect limited selling pressure.
The stock is now back above both SMAs after making higher lows in June and July. Also notice how the troughs form a trend line along with the April low.
This consolidation phase has compressed Bollinger Band Width. Such a volatility squeeze may create the potential for prices to expand -- especially after closing at the top of the recent range.
Finally, the 8-day exponential moving average (EMA) is back above the 21-day EMA and MACD is rising again. Those patterns may suggest short-term momentum is turning bullish again.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. You Can Trade, Inc. is also a wholly owned subsidiary of TradeStation Group, Inc., operating under its own brand and trademarks. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
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