Occidental Petroleum Rises 3.02% as Technical Indicators Signal Bullish Momentum

Occidental Petroleum (OXY) recently demonstrated notable upward momentum, rising 3.02% to close at $42.69 on June 3, 2025, marking two consecutive gains totaling 4.68%. This price action signals improved short-term sentiment but warrants deeper technical scrutiny within the broader context of its annual performance.
Candlestick Theory
Recent sessions show a potential bullish reversal pattern forming. The June 3rd candle closed near its high ($43.03 high vs. $42.69 close) after rebounding from $40.96, creating a long-bodied bullish candle that overpowered the preceding bearish engulfing pattern of May 28th–30th. Key resistance is evident at $43.45 (late-May swing high), while support converges near $41.00, aligning with the May 30th low ($40.51) and June 2nd trough ($41.00). A sustained close above $43.45 may catalyze further upside toward the $44.90 resistance zone.
Moving Average Theory
The 50-day SMA (approximately $41.20) has flattened near the current price, reflecting consolidation after the April–May recovery from $36.47. However, the 100-day SMA (~$44.50) and 200-day SMA (~$48.30) remain above the price, confirming the longer-term downtrend. The proximity of the 50-day SMA to the price acts as immediate support, but a bullish reversal would require the 50-day to cross above the 100-day SMA—currently unfulfilled. This configuration suggests transitional price behavior rather than a decisive trend shift.
MACD & KDJ Indicators
The MACD histogram shows improving bullish momentum, with the signal line flattening near the zero line after a positive crossover in late May. This aligns with the two-day rally but requires confirmation through sustained histogram expansion. Meanwhile, the KDJ indicator exhibits overbought signals: the %K line (near 88) has surged above 80, while the %D line follows closely. This divergence warns of near-term exhaustion, particularly as the J-curve approaches extreme territory. These oscillators collectively signal potential short-term pullback pressure despite emerging positive momentum.
Bollinger Bands
Volatility has contracted, with the 20-day bands narrowing to approximately $40.50 (lower) and $43.50 (upper). The June 3rd close near $42.69 positions the price at the upper band—traditionally an overextended signal. This compression after the April–May rally often precedes directional breaks. A confirmed breakout above $43.50 could activate bullish targets toward $44.90, while failure may retest the mid-band ($42.00) or lower band ($40.50).
Volume-Price Relationship
The rally was validated by rising volume, with June 3rd turnover (11.18M shares) exceeding the 10-day average. This follows similarly supportive volume during the May 8th surge (22.52M shares) and April 9th rebound (40.10M shares). Conversely, distribution phases like the April 3rd–10th sell-off exhibited climactic volume, confirming capitulation. Current volume trends reinforce the recovery’s sustainability but warrant monitoring for divergence on further gains.
Relative Strength Index (RSI)
The 14-day RSI (~65) edges toward overbought territory but remains below the 70 warning threshold. This reading reflects strengthening momentum without immediate exhaustion signals. Historical divergences merit attention: the early-April low ($36.47) coincided with an oversold RSI (~25), foreshadowing the subsequent 25% rebound. While the current RSI suggests room for upside, its convergence with Bollinger Band and KDJ overbought signals cautions against chasing immediate extensions.
Fibonacci Retracement
Using the February 21st high ($50.42) and April 10th low ($36.47), key Fibonacci levels frame the recovery: 38.2% ($41.80) and 50% ($43.45). The price recently reclaimed the 38.2% retracement, but faces resistance at the 50% level—reinforced by the May 14th high ($43.82). A decisive break above $43.45 may propel OXY toward the 61.8% retracement ($45.09), aligning with the March 2025 consolidation zone. Failure here may retest the 38.2% support.
Confluence and Divergence
Confluence arises at the $41.00 support level, reinforced by the 50-day SMA, psychological support, and recent swing lows. Resistance near $43.45 combines Fibonacci, horizontal price structure, and Bollinger Band constraints. However, divergences emerge in momentum indicators: the KDJ warns of overextension while MACD and RSI retain upside capacity. Volume confirms recent gains but must hold to sustain a breakout. The recovery remains bounded within the broader bearish trend unless OXY surpasses the 200-day SMA (~$48.30), currently improbable without significant catalysts. Traders should monitor the $43.45–$43.82 resistance band for breakout confirmation or rejection, with short-term pullbacks likely to find support near $41.00.