Occidental Petroleum – For the Long Haul

• Posted by Greg Harmon
• on November 21st, 2013

The broad market took a big step higher on Thursday but the move for Occidental Petroleum, $OXY, was an important one. Technically it had been trading in a bull flag, a slight downward consolidation, after a move higher from August to late October. Thursday it broke that flag to the upside, signalling a continuation of the prior move and a target of 109, as noted in the chart below. A symmetrical move to the last one would suggest this will take until about mid January. As it breaks the RSI and MACD, momentum indicators are supporting the continued move as the RSI is in bullish territory and rising

and the MACD about to cross as it turns up. But that might just be the next in a series of legs higher. When you pullback to the monthly chart a bearish Butterfly Harmonic is confirmed in the last 3 years of price history. The target for the Butterfly is at 131.85 before a Potential Reversal Zone comes into play. Look at this one for the long run.

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