[ Jump to the 2024-06-02 update ]
This stock that Warren Buffett’s Berkshire Hathaway likes demonstrates a close relationship with its 126-week SMA and 129-week SMA weekly support lines. OXY started respecting these moving average lines as support back in September and December 2021, respectively; however, prior to that time the stock respected these lines as resistance.
Once OXY broke above resistance in September 2021, it came back to test it (December 2021), and from there it made a fantastic leap towards the high seventies, far away from its support.
Occidental Petroleum’s stock traded sideways since, until it reunited with its support lines in December 2023 through February 2024:
To continue its move up, OXY had to break through the relatively new resistance, which it had no difficulty doing:
OXY departed from the dock with full steam ahead, seeing no MA resistance line in sight:
Sellers were waiting, though, around the psychological round number of $70, and OXY changed course:
OXY did not stop deflating air. How far will it go? What would be a good opportunity to buy the stock?
One optional regrouping area is where the good old support lines hang. As of this weekend, the 126-week SMA is at $60.75 and the 129-week SMA is at $60.01. OXY closed last week at $61.95:
Market participants may be lurking right there at support to pick up shares. One of those may be Warren Buffett’s Berkshire Hathaway, which as of March 31st, 2024, was holding 248,018,128 OXY shares.
2024-06-02 Update
There we go, OXY kissed its 126-week SMA support line and bounced back to form the first green weekly candle in five weeks:
Zooming in:
This is the point where market participants ramp up to take OXY higher.
We shall track its price action.