Can Buffett's Elephant in the Room Continue Its Stampede?

Let's review the charts and indicators of Occidental Petroleum.

Berkshire Hathaway (BRK.A) (BRK.B) is the biggest shareholder of Occidental Petroleum (OXY) . Warren Buffett's investment giant now controls approximately 25% of the shares -- nothing to sneeze about. Investors all over the world pay attention to the investment decisions of Buffett, the head of Berkshire, so it's worth keeping an eye on Occidental. 

Let's review the charts and indicators.

In the daily bar chart of OXY, below, I see a mixed picture. The shares have traded sideways since February and some may consider the price action as a base pattern. Maybe. I can see a saucer-like curve to the price action but my favorite indicators are not confirming things.

First, trading volume looks like it has declined from March. A bottom pattern should see volume expand from the middle of the base.

The daily On-Balance-Volume (OBV) line shows weakness into late June and suggests that sellers of OXY have been more aggressive than buyers -- not the pattern I want to see. The Moving Average Convergence Divergence (MACD) oscillator is bullish but could fade in the days ahead. 

 

In the weekly Japanese candlestick chart of OXY, below, I see a mixed setup. The shares are trading sideways in a long sideways consolidation pattern. Prices are trading slightly above the 40-week moving average line.

 

The weekly OBV line has been stalled in a neutral trend but the past two months show some slight improvement. The MACD oscillator is turning up from a cover shorts buy signal. The oscillator has not reached an outright buy signal yet. 

 

 

 

In this daily Point and Figure chart of OXY, below, I can see an upside price target in the $83 area but a trade at $67 is needed to refresh the uptrend. 

 

 

In this weekly Point and Figure chart of OXY, below, I get the same signals as the daily chart above. 

 

Bottom-line strategy: With crude oil prices inching higher in recent weeks the assumption would be to anticipate gains in the price of OXY. I am not so sure that "linkage" will work this time around. We'll see.

 

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