Occidental Petroleum Rises 3.06% on Bullish Reversal Pattern as MACD Crossover and Fibonacci Support Signal Potential Uptrend

Occidental Petroleum (OXY) has closed the most recent session with a 3.06% increase, indicating a short-term bullish bias. The candlestick pattern formed on 2026-01-02 suggests a strong bullish reversal, characterized by a large body with minimal shadow, implying strong buying pressure. Key support levels are identified at $39.62 (2025-12-19 close) and $38.92 (2025-12-16 close), while resistance lies near $42.38 (2026-01-02 close) and $43.41 (2025-12-02 high). The price action shows a potential consolidation phase, with the 50-day moving average currently at $41.75, above the 200-day MA of $42.50, suggesting a mixed trend. However, the 200-day MA crossing above the 50-day MA in late 2025 signals a bearish crossover, which may indicate a longer-term downtrend.
Candlestick Theory
The recent bullish candle on 2026-01-02, coupled with a preceding bearish candle on 2025-12-31 (-0.82%), forms a potential bullish engulfing pattern. This pattern, combined with the price testing the $39.62 support level twice in early January, suggests a possible reversal. The 2025-12-17 session (4.39% gain) and the 2025-12-16 session (-3.16% loss) form a wide-range pattern, indicating heightened volatility and potential exhaustion of the prior bearish trend.
Moving Average Theory
The 50-day MA currently at $41.75 intersects with the 200-day MA at $42.50, forming a bearish "death cross" in late 2025. However, the price has recently closed above the 50-day MA, suggesting short-term strength. The 100-day MA at $42.10 acts as a dynamic resistance. A sustained break above this level could invalidate the bearish crossover and reinvigorate the uptrend.
MACD & KDJ Indicators
The MACD line has crossed above the signal line in early January, forming a bullish crossover, with the histogram expanding, indicating increasing momentum. The KDJ indicator shows %K at 78 and %D at 70, suggesting overbought conditions. However, the %K line has not yet crossed below %D, which may delay a sell signal. Divergence between the KDJ and price is observed in mid-December, where prices made lower lows while %K made higher lows, hinting at potential bearish reversal.
Bollinger Bands
The 20-day SMA is at $41.50, with upper and lower bands at $43.00 and $40.00, respectively. The price has recently tested the upper band, indicating overbought conditions. A contraction in band width occurred in late December, followed by a breakout in early January, suggesting increased volatility and potential continuation of the bullish trend.
Volume-Price Relationship
Trading volume on 2026-01-02 surged to 10.37 million shares, a 33% increase from the previous session, validating the price increase. However, volume has trended lower since mid-December, raising concerns about the sustainability of the uptrend. A divergence between rising prices and declining volume in early January may indicate weakening momentum.
RSI
The 14-day RSI is currently at 62, approaching overbought territory (70). A recent spike to 68 in early January suggests potential exhaustion. Historical data shows RSI dipping below 30 in late December, aligning with bearish momentum, but subsequent divergence in mid-December (lower lows in price vs. higher lows in RSI) indicates waning bearish pressure.
Fibonacci Retracement
Key Fibonacci levels derived from the 2025-08-07 low ($42.35) to the 2025-10-02 high ($47.92) include 38.2% at $45.30, 50% at $44.70, and 61.8% at $43.80. The current price of $42.38 aligns with the 61.8% retracement level, suggesting a potential support zone. A break below this level could target the 78.6% level at $42.20, with confluence from the 200-day MA.

Confluence between the bullish engulfing pattern, MACD crossover, and Fibonacci support at $42.38 suggests a high-probability reversal scenario. However, divergences in volume and RSI hint at potential exhaustion. A sustained break above $43.41 (2025-12-02 high) with increasing volume would confirm the uptrend, while a close below $40.00 (Bollinger lower band) may trigger a deeper correction. Traders should monitor the 50-day MA for trend reinvigoration and the KDJ for bearish divergence.