Occidental Petroleum Surges 3.78% to $46.45 on Bullish Technical Breakout

Candlestick Theory
Occidental Petroleum (OXY) concluded the latest session at $46.45, a 3.78% gain, forming a robust bullish candle that penetrated resistance near $46. Recent price action reveals consolidation between $44.76 and $46.64, with the 3-day rally demonstrating strong buying interest. Key support is established at $44.76 (June 12 low), while resistance caps near $46.45–$46.64. The breakout above the $45.59–$46.64 range on elevated volume suggests bullish conviction, though failure to sustain above $46.45 may signal short-term exhaustion.
Moving Average Theory
The 50-day MA (~$45.12) recently crossed above the 100-day MA (~$43.85), signaling strengthening intermediate momentum. Current price ($46.45) trades well above both the 50-day and 200-day MAs ($43.28), confirming a bullish primary trend. The 200-day MA offers major dynamic support, while the 50-day MA aligns with the $44.76–$45.59 congestion zone – a critical short-term demand area. The stacked alignment (price > 50-day > 100-day > 200-day) denotes a robust uptrend, but stretched deviations from the 50-day MA warn of potential consolidation.
MACD & KDJ Indicators
MACD (12,26,9) shows a widening bullish histogram above the signal line, confirming accelerating upside momentum. KDJ oscillators (K:62, D:58, J:70) recently exited overbought territory but remain elevated, suggesting continued upward pressure without immediate exhaustion. While both indicators align bullishly, the KDJ’s J-line at 70 nears overbought thresholds (typically >80), indicating increased vulnerability to profit-taking near stiff resistance. No bearish divergence is yet evident.
Bollinger Bands
Price consistently tests the upper Bollinger Band (~$46.20), reflecting strong upward momentum. Bandwidth expansion from the June 10 contraction signals volatility pickup, supporting directional conviction. Recent closes above the upper band (June 13) may imply short-term overextension, increasing the probability of reversion toward the 20-period moving average ($44.95). Sustained trading in the upper third of the bands emphasizes bullish control but raises near-term mean-reversion risks.
Volume-Price Relationship
The June 13 breakout occurred on substantially elevated volume (23.49M shares vs. 9.68M prior session), validating the bullish breakout with strong accumulation. Volume expanded on each of the last three up days, confirming buyer commitment. Key resistance breaches (e.g., May 8 surge to $41.44 on 22.52M shares) were similarly volume-confirmed. However, the June 4 decline (-1.83%) saw above-average volume (11.58M), highlighting persistent selling pressure near swing highs – a cautionary signal for future resistance tests.
Relative Strength Index (RSI)
The 14-day RSI (65) resides in neutral territory, avoiding overbought (>70) conditions despite the recent rally. This allows room for additional upside before technical exhaustion. Note that the RSI diverged bearishly with price on June 4 (price lower high vs. RSI lower high), preceding a pullback. Currently, no such divergence exists. While oversold (<30) conditions occurred during the April 10 selloff, the indicator’s mid-range positioning offers limited directional bias currently.
Fibonacci Retracement
Applying Fib levels to the rally from the April swing low ($41.44) to June 13 high ($46.45): The 23.6% retracement ($45.47) aligns with prior resistance, now acting as immediate support. The 38.2% level ($44.45) converges with the 50-day MA and the June 9 swing low ($42.715), marking a critical support cluster. The 61.8% retracement ($43.04) overlaps the 200-day MA and May 22 low ($40.155), defining major long-term support. These confluences highlight $44.45–$44.76 as a high-probability demand zone.
Confluence and Divergence Synthesis
Significant confluence exists at $44.75–$45.00 (50-day MA, 23.6% Fib, volume-supported prior resistance), establishing a robust short-term floor. Bearish divergence between price and RSI in early June triggered a pullback, but no such divergence currently undermines momentum. KDJ's approach to overbought territory and Bollinger Band expansion suggest the breakout may consolidate, potentially testing $45.47–$45.59 before extending gains. Sustained closes above $46.45 would signal continuation toward the 52-week high ($49.33), though profit-taking near Fib extensions appears probable. Volume-backed trend confirmation and aligned moving averages favor bullish bias, with $44.75 serving as a key risk-management pivot.