Just over 6 months ago, OXY was flagged to technically not do the expected rally as it broke down of the H&S shoulder. Many had bought in following the reported Berkshire's purchases of OXY, BUT technicals was telling of another type of scenario. Watching the breakdown was rather painful as it stretched over the last 6 months, with a recovery attempt that failed the shoulder line the second time, as if not clear enough.
Finally, this week closed below the channel trendline (adjusted from previous analyses). Furthermore, this is the 52 week second lowest weekly close... good enough to tell that it will be the 52 week lowest close soon.
Technicals are bearish, not very but clearly.
Therefore, more downside is expected up till October and looking at a target of 50.
The bearish marubozu may be indicating the rather strong downward momentum too.
Point here is that it was clear and heads up given 6 months earlier. Now, we take delivery.
Also note that the USD appears to be strengthening (a lot?) and this can push the breakdown further and faster. The overall equity markets are overbought, and if it is time for a retracement, then OXY can be affected further.
Heads up... again.
Finally, this week closed below the channel trendline (adjusted from previous analyses). Furthermore, this is the 52 week second lowest weekly close... good enough to tell that it will be the 52 week lowest close soon.
Technicals are bearish, not very but clearly.
Therefore, more downside is expected up till October and looking at a target of 50.
The bearish marubozu may be indicating the rather strong downward momentum too.
Point here is that it was clear and heads up given 6 months earlier. Now, we take delivery.
Also note that the USD appears to be strengthening (a lot?) and this can push the breakdown further and faster. The overall equity markets are overbought, and if it is time for a retracement, then OXY can be affected further.
Heads up... again.
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