Occidental Petroleum Corporation (NYSE:OXY) has returned 129.52% year to date. Rising crude prices have largely fueled the YTD rally despite stock markets remaining depressed. The stock has largely been on a buy call by analysts. A potential breakout could allow more buyers to get in.
The latest catalyst for Occidental stock came from Berkshire Hathaway news. On Friday, the US Federal Energy Regulatory Commission approved Berkshire’s 50% OXY stake. Berkshire owner Warren Buffet has, in the past, been accumulating the oil producer. The latest filing boosted Occidental Petroleum, with the stock jumping 9% on Friday.
On Wall Street, Occidental has a buy rating by 9 analysts tracked by TipRanks. The average price target is $76, with some analysts expecting the stock to rise as much as $94. Occidental currently trades at $71.29, a resistance zone, readying a breakout as the price pumps. The price level was last reached in May.
Occidental Petroleum completes a minor breakout at $65
Source – TradingView
Technical pointers show that Occidental Petroleum has successfully cleared a minor resistance at $65. The momentum indicator shows a strong and increasing bullish momentum. The Berkshire-inspired rally could see Occidental clear the next hurdle at $71. That is the level that forced a correction in May following a sustained rally.
A breakout followed by a price retracement could allow more buyers into the stock. $71 and $65 will remain the key technical levels to watch on the downside.
Concluding thoughts
Occidental Petroleum’s bullish strengths increased after Berkshire was approved for a 50% stake. The stock cleared the $65 minor resistance. It heads to another resistance at $71. A breakout could attract buyers.
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