Pioneer Natural Resources (PXD) is an independent oil and natural gas exploration and production company posted mixed quarterly numbers (earnings beat, revenue miss) Wednesday night.
Let's check the charts to see what's happening there.
In the daily bar chart of PXD, below, I see that the shares have been testing the $210-$200 area a number of times since July. Prices have made lower highs from June and now is the chance for the bears to break the resolve of the bulls. PXD is trading below the declining 50-day moving average line and below the declining 200-day moving average line.
The daily On-Balance-Volume (OBV) line has been in a decline since early June. The Moving Average Convergence Divergence (MACD) oscillator is in a bearish alignment below the zero line.
In the weekly Japanese candlestick chart of PXD, below, I can see the longer-term picture for this name. The shares have rolled over since early 2022 and buying has appeared in the $210-$195 area. A break of this "support" zone looks likely now and a break of this area is probably going to precipitate further declines.
PXD trades below the declining 40-week moving average line. The recent candles are not showing me lower shadow and thus traders are not rejecting the lows.
The weekly OBV line has been soft since the middle of 2022. The MACD oscillator has just moved below the zero line for an outright sell signal.
In this daily Point and Figure chart of PXD, below, I can see a potential downside price target in the $173 area.
In this weekly Point and Figure chart of PXD, below, I can see a price target in the $165 area.
Bottom-line strategy: The two Point and Figure charts (above) suggest a significant decline is possible. Traders who are long PXD should reduce their exposure and/or tighten sell stops to sidestep the possibility of a serious correction.
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