Action Alerts PLUS holding Occidental Petroleum (OXY) is shaping up nicely on the charts, and we see further gains. We think this is a good time and place to add to long positions and raise sell-stops.
OXY, chart above, made a double bottom in August and September and rallied strongly in October. There was a brief pullback at the end of October, and then prices quickly rallied to new highs for the move up. Prices are moving up today and look likely to close over the 200-day moving average. Traders could consider adding to existing long positions on OXY here.
Sell-stops on initial positions can be raised to your entry price, and stops on new longs can be placed at $71 for now. The next leg higher on OXY could carry to $85 in the weeks ahead.