NYSE:OXY may be ready to breakout.

A possible breakout setup was detected on OCCIDENTAL PETROLEUM CORP (NYSE:OXY) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NYSE:OXY.

Technical analysis of NYSE:OXY

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

We assign a technical rating of 8 out of 10 to OXY. In the last year, OXY was one of the better performers, but we do observe some doubts in the very recent evolution.

• The long term trend is positive and the short term trend is neutral. The long term trend gets the benefit of the doubt for now.
• Looking at the yearly performance, OXY did better than 99% of all other stocks. We also observe that the gains produced by OXY over the past year are nicely spread over this period.
• OXY is one of the better performing stocks in the Oil, Gas & Consumable Fuels industry, it outperforms 93% of 388 stocks in the same industry.
• OXY is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so OXY slightly outperforms the market at the moment.
• In the last month OXY has a been trading in the 67.14 - 76.11 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

How does the Setup look for NYSE:OXY

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NYSE:OXY currently has a 8 as setup rating:

Besides having an excellent technical rating, OXY also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 74.33. Right above this resistance zone may be a good entry point.

How can NYSE:OXY be traded?

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this zone.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

More breakout setups can be found in our Breakout analyzer.