Marathon Petroleum Corp. (MPC) is a leading, integrated, downstream energy company that operates the nation's largest refining system. Goldman Sachs (GS) raised MPC to a buy rating Wednesday with a $150 price target.
Let's check and see how the charts and indicators are aligned.
In the daily bar chart of MPC, below, I can see that the shares are in an upward trend. MPC trades above the rising 50-day moving average line and above the rising 200-day line.
The trading volume is fairly neutral looking at the past year and the On-Balance-Volume (OBV) line has been in a downward trend from June. A weak OBV line suggests that sellers of MPC are being more aggressive than buyers.
The Moving Average Convergence Divergence (MACD) oscillator is slightly above the zero line in buy territory.
In the weekly Japanese candlestick chart of MPC, below, I can see that the stock has been in a longer-term advance from late 2020. The rising 40-week moving average line has defined the uptrend very well and dips to or tests of that average line have turned out to be buying opportunities.
The OBV line shows a positive trend the past three years and is more positive looking than the daily line. The MACD oscillator has been moving sideways from June but remains above the zero line.
In this daily Point and Figure chart of MPC, below, I can see an upside price target in the $153 area -- close to the fundamental price target noted above.
In this weekly Point and Figure chart of MPC, below, I can see a potential downside price target in the $105 area.
Bottom-line strategy: MPC is indeed in an uptrend but the pace of its advance has been slowing and the daily OBV line is in a decline. What does this mean? Strategy-wise traders should raise stop protection to a close below $120. Stay long or go long looking for gains to the $153 area.
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