Occidental Petroleum Corporation (NYSE:OXY) is trading at $55. It dropped to this level last week after the bear markets were confirmed. This analysis notes that the stock first shot to $55 after Berkshire Hathaway invested in the company. We consider that the company may not go lower.
Occidental Petroleum has been on the watch lists of many investors. This was after Berkshire Hathaway invested in the company. That information pushed the price from $38 to $56. Since then, the stock has had support at the current levels. From the support level, the stock tested a high of $74 three weeks ago. This was followed by a decline due to bear market fears.
We think that the stock just created an opportunity for new investors. Despite the bear market, the stock is highly unlikely to move below the current level. This makes it good for buyers interested in long-term gains.
Occidental Petroleum will pivot at $55 to retest the $74 high
Source – TradingView
Occidental Petroleum lost for the third consecutive week to close at $55. This week, the stock is projected to start consolidating at the current level before finding a new high. The analysis considers that Occidental Petroleum will have support at $55. The first price target will be $60. After hitting $60, the stock will move to find a new high above $75.
Occidental Corporation is a strong buy at $55. The stock is unlikely to drop below the valuation of $55; hence it is considered to be at a bottom. The next price target is $60 before rising to $75.