Occidental Petroleum Corporation (NYSE:OXY) hit a high of $58.77 this week. This was after news emerged that Warren Buffet’s Berkshire Hathaway had purchased a substantial stake in the company. The transaction comes in the wake of record-high prices of oil in the global markets as the Russian crisis creates growing shocks in the market.
Occidental Petroleum projected to find new resistance at $60
Source – TradingView
The RSI of OXY is currently at 73.88, which means the stock can be considered overbought. A look at the MACD chart indicates increasing divergence from the signal.
The trends imply that share price can trend higher as the reality of the Russian crisis settles in the market. This means that OXY can stay in the overbought region for an extended period of time.
The price of $58.77 is the highest in recent weeks but not the all-time high for the stock. In May of 2011, the company hit the highest price of $113.08. That was just before the oil prices slammed on the breaks.
Oil prices are back to levels recorded about a decade ago. With technical investors being good students of history, it can be expected that the strong correlation between oil prices and the share price will continue.
The share price is therefore likely to trend higher. This analysis projects that the share will rise to find resistance at $60.
Summary
As oil prices continue to rise, the share price of Occidental Petroleum will continue rising. The share is likely to remain in the overbought region for an extended period. Breaking through the $60 resistance will be dependent on this quarter’s results.
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