Occidental Petroleum Jumps 5.54% On Bullish Technical Breakout With Elevated Volume

Occidental Petroleum (OXY) closed at $45.75 with a significant 5.54% gain in the latest session, supported by elevated volume of 15.7 million shares. This bullish breakout after recent consolidation warrants multi-indicator technical assessment.
Candlestick Theory
The latest bullish engulfing candle – closing above the prior session’s high after two dojis near $43.30 – signals renewed buying pressure. Key resistance emerges at $46.00 (June 20 high) and $47.33 (June 23 peak), while support consolidates at $42.80–$43.30, anchored by the June 26 low and the July 7 swing point. A prior evening star pattern at $47.33 confirms this zone as a critical resistance barrier.
Moving Average Theory
The 50-day moving average ($43.80) recently crossed above the 100-day MA ($42.20), supporting bullish momentum. Current price ($45.75) trading above all key MAs (50/100/200-day) reinforces an established intermediate uptrend. The 200-day MA at $48.50 remains a crucial long-term resistance level to monitor, aligning with the June high.
MACD & KDJ Indicators
MACD histogram shows positive expansion above its signal line, confirming building bullish momentum. KDJ presents a bullish crossover (K-line rising above D-line) from neutral territory (K:52, D:48), avoiding overbought conditions. Neither oscillator signals exhaustion, though divergence from June’s overbought KDJ peak warrants caution near resistance zones.
Bollinger Bands
Price pierced the upper Bollinger Band ($44.80) during the latest surge, indicating short-term overextension. However, expanding bands following a consolidation period suggest breakout validation is probable. A close back within bands would signal consolidation, while sustained upper-band tagging could foreshadow trend acceleration.
Volume-Price Relationship
The breakout occurred on 26% higher volume than the 10-day average, lending credibility to the bullish move. Volume consistently expanded during the three-day advance from $42.60–$45.75, supporting accumulation. However, volume remains below June’s peak levels at $47.33, necessitating continued participation for resistance breaches.
Relative Strength Index (RSI)
Daily RSI (64) resides in neutral territory after rebounding from 40 (near oversold) in early July. This positions Occidental Petroleum favorably for additional upside before overbought (>70) risks emerge. The RSI’s higher low versus price’s equal low in late June shows positive momentum divergence.
Fibonacci Retracement
Applying Fibonacci to the June decline (high: $47.33, low: $42.33) shows the latest rally breached the 61.8% retracement ($45.40), targeting the 78.6% level ($46.30). The 50% level ($44.83) now acts as support, coinciding with the 100-day moving average and reinforcing confluence. This harmonic alignment increases confidence in near-term upside potential toward $46.00–$46.30 resistance.
Confluence & Divergence
Strong confluence exists at $45.40 (Fibonacci 61.8% + Bollinger upper band), which the breakout validated. Bullish confirmation comes from RSI divergence, MACD momentum, and volume-supported candlestick reversal. Primary divergence lies between short-term Bollinger overextension and neutral RSI/MACD readings, suggesting consolidation may precede any test of $47.33 resistance. The $42.80–$43.30 zone remains critical for trend sustainability, supported by the 38.2% Fibonacci level and the 50-day moving average cluster.