OXY Could Be at the Start of a Significant Advance

by Sam Collins | February 6, 2013 1:55 am

Occidental Petroleum (NYSE:OXY[1]) — This is one of the largest oil and gas companies in the United States, and its subsidiary, OxyChem, is one of the largest marketers of chlorine and caustic soda.

Although production in 2011 was down due to a suspension of operations in Libya, it is expected to rebound by 6% to 8% in both 2012 and 2013. This increase would be the result of a ramp-up in Permian Basin and Bakken Shale drilling.

Average consensus earnings for 2012 are estimated at $7.32, and $7.81 in 2013. The stock has an annual dividend yield of 2.5%.

Technically, OXY broke its bearish resistance line in late January on very high volume, while its MACD is bullish — strong indications that the stock could be at the beginning of a significant advance. The trading target is $100, but investors might want to hold OXY for more significant gains.

OXY Chart
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Trade of the Day Chart Key

  1. OXY: http://studio-5.financialcontent.com/investplace/quote?Symbol=OXY

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