OXY - a bullish setup for the ages
Updated
OXY is on the verge of breaking through a major resistance line which was first touched over a decade ago. As the daily chart repeatedly bumps up against, but not crossing, this key resistance line, multiple factors make OXY a screaming buy.
Note
The major trendline is acting as resistance here. Ugly red candle today took us out of range. There is a risk that stocks in general sell off here and that oil stocks go with them.For ideal entry timing, I would recommend waiting for one or more of the following signals -
- Oil futures breakout of current short-term flag, especially if it occurs while general stocks sell off
- OXY, after a pullback, has a strong upwards bounce off of the teal pennant resistance line
- OXY has a weekly close above the major resistance line
If I spot any of these signals, I will update this idea with a comment! Good luck everybody.
Note
The pullback looks to have reversed. While we didn't pull all the way back to the pennant breakout level, we did post two daily gains after bouncing off a .618 Fib retracement level when measured from pennant breakout close to intraday peak of last week. I would open at least a partial position before markets close for the week, if you have not already done so.
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