Occidental Petroleum Corp. ( OXY) is ready to report their latest quarterly results to shareholders such as Warren Buffett after the close of trading Monday. Let's check out the condition of the charts and the messages from the indicators.
In this daily bar chart of OXY, below, I see a weakening picture. The shares have softened since a high in November. OXY now trades below the negatively sloped 50-day moving average line and below the cresting 200-day moving average line.
The trading volume looks like it has been weakening since August. The On-Balance-Volume (OBV) line has been weakening since November and tells me that sellers of OXY have become more aggressive than buyers. The Moving Average Convergence Divergence (MACD) oscillator is now below the zero line in sell territory.
In the weekly Japanese candlestick chart of OXY, below, I see a weak picture. The shares are trading below the declining 40-week moving average line. The weekly OBV line shows the start of a decline from the middle of January.
The weekly trading volume has been weakening for several months. The MACD oscillator has been weakening from May and is now crossing below the zero line.
In this daily Point and Figure chart of OXY, below, I can see a potential downside price target in the $54 area.
In this weekly Point and Figure chart of OXY, below, I can see a downside price objective in the $50 area.
Bottom-line strategy: Despite the fact that Warren Buffett has been a large buyer of OXY, the charts have turned soft. I do not see a major top formation on OXY but a period of weakness is possible. I have no special knowledge of what OXY will tell shareholders after the close of trading Monday but traders should act accordingly.