Occidental Petroleum Corporation (OXY) — I last featured OXY stock as the Trade of the Day on Feb. 1, after shares experienced a selling climax. I recommended readers buy at $67 with a trading target of $76 within four months. That objective was achieved in less than three months’ time for a return of 13%, plus dividends, and those who continued to hold are up nearly 17% on the position. But I think there’s still plenty of gas left in the tank.
Occidental Petroleum is one of the largest oil and gas companies in the United States. S&P Capital IQ Equity Research rates OXY stock a “Buy,” calling it a “conservative oil play” with a medium risk level. Its analysts have a 12-month price target of $84 on shares.
Occidental Petroleum pays an annual dividend of $3 per share for a forward yield of 3.8%.
Turning to the chart, we can see OXY stock experienced a selling climax in January as high accumulation overpowered sellers who liquidated early in the month. Shares jumped to their 200-day moving average in February, where they consolidated in a right triangle before breaking higher in April.
On April 20, OXY stock executed a golden cross — a long-term buy signal — after slicing through its 200-day moving average. This spectacular breakout took shares to about $78, where they consolidated again — this time within a rectangle from $75 to $77. OXY stock broke from the rectangle on Thursday, backed by a new buy signal from the MACD indicator.
New buyers should try to purchase shares at $78 with a target of $84 for a potential return of almost 8%. Those who bought OXY stock in February should hold and stand to make more than 25% in capital gains if the new target is achieved.
