What's Next For Occidental Petroleum?
Occidental Petroleum engages in the acquisition, exploration and development of oil and gas properties in the US, the Middle East, Africa, and Latin America. Their mission is to develop energy resources safely, profitably and responsibly to maximize value. They aim to do this by achieving excellence in their industry as the leader, globally respected, financially sound and well positioned to generate future value for its stakeholders.
Recently they have been trading in a long-term downward trend as the graph below demonstrates. They are significantly below their share price a few years back where in 2014 it managed to hit $100 per share whereas now it is trading around the $25 per share level. It recently hit as low as $8.52 but has since demonstrated a rally and is now trading at an important level as demonstrated by the chart below.
The big blue line demonstrates the downward trend and the black lines representing the Fibonacci levels from the most recent downtrend. The 38.2% level appears to be holding as a strong level of support and the price is currently around this level. There is a bit of an upward ascending channel forming which the price also appears to be respecting so it will be interesting to see what happens over the coming weeks.
If the price breaks this support level then it is likely that we can see a continuation of this downward momentum. Although, if the price breaks through this level and the 50% Fibonacci level they we may well see a further increase of the price within the ascending channel. This is a stock we will be keeping a close eye on over the coming weeks.