Marathon Oil (MRO) is showing a bullish chart pattern and accompanying indicators. MRO finished a seven-month consolidation pattern and has begun to make new highs for the move up this month. Our indicators are still positive and we would look to trade MRO from the long side into the first quarter of 2017.
In this one-year daily bar chart of MRO, above, we can see the bottom in January-February followed by a two-month advance. Over the next seven months MRO trades sideways in a choppy pattern. Prices trade above and below the 50-day average several times, but the 200-day average line is the one to watch. Notice how every test of the 200-day line was a buying opportunity. The On-Balance-Volume (OBV) is neutral as it moves along with the price action, but it takes on a more bullish direction in early November. The Moving Average Convergence Divergence (MACD) oscillator turned above the zero line in November for a buy signal but has recent slipped to a take-profits signal.
This three-year weekly chart of MRO, above is pretty interesting. Prices broke out of their consolidation phase earlier this month. The slope of the 40-week moving average line is positive. The daily OBV line was neutral, but this weekly OBV line is super strong and suggests some very aggressive accumulation of shares this year. The weekly MACD oscillator has been bullish since July and turned up last month to a fresh go long signal.
This point-and-figure chart, above, clearly shows the recent upside breakout. Dips and strength should be bought with $24 our first upside price target.