Occidental Petroleum (OXY) is a big ship. It will take a long time to turn this ship from down to sideways and then up, but OXY could be our shopping list for possible purchase in the second quarter.
Looking at this chart of OXY, above, we can see some early positive signs of a reversal. Consequently, I'm putting OXY, which is part of the Action Alerts PLUS portfolio, on my shopping list, but we will need more evidence before we buy, so we'll keep our options open in the meantime.
Prices for OXY have rallied above the 50-day moving average and are touching the 200-day moving average. The On-Balance-Volume (OBV) line has turned up for the past six weeks. We can see a bullish divergence between the lower price action in December and January, and the slightly higher reading from the momentum study in the lower panel.
This longer-term chart of OXY, above, is mixed. Prices have been declining for nearly two years, but prices are back to touching the 40-week moving average. The OBV line is neutral while the Moving Average Convergence Divergence (MACD) oscillator generated a cover shorts signal.
In the weeks ahead, OXY could close above the 40-week moving average and the OBV line could turn higher. We will welcome these developments if and when they occur. Meanwhile, we will watch for more positive clues from our daily chart.