Will Occidental Petroleum stock hold support as oversold conditions limit further selling?

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Occidental Petroleum slides 5.01% today

Highlights

Oil prices moved above $108 per barrel due to supply disruptions, supporting revenue and margin potential for Occidental Petroleum.
Occidental Petroleum stock remains under persistent selling pressure despite an improved outlook from higher crude benchmarks.
Technical signals show strong selling, an expected price range of $57.41 to $61.9, and a 60% probability of further downside.

Broader selling pressure tempers support from surging oil prices

Oil prices jumped above $108 per barrel, driven by supply disruptions, according to Chartmill. Rising crude benchmarks can directly boost revenues and margins for oil producers such as Occidental Petroleum, improving the fundamental outlook. This development could typically provide support for OXY, though price action has remained under broader selling pressure.

Mixed momentum signals as Oxy stalls below key resistances

On the hourly chart, OXY is trading below its MA-20 and MA-50, confirming near-term weakness, while the daily timeframe shows price remains above the MA-200 and underlying long-term support. The Ichimoku Kijun at $62 functions as immediate resistance. Momentum signals are mixed: MACD is on a strong buy, ADX remains neutral, and RSI at 35.51 sits in the sell zone. Stoch RSI, CCI, and Bull/Bear Power all point to oversold or seller-dominated conditions, highlighting divergence between oscillators that indicate negative momentum and the MACD, which reflects buying interest.

Downside momentum favored within tightening price range

For the next several sessions, OXY is expected to trade within a volatility band of $57.41 to $61.9. Downside momentum holds a 60% probability relative to the 40% probability of a rebound. The baseline scenario anticipates price holding within this range, while a move above $62 would signal bullish potential, and a drop below $57.41 would confirm ongoing bearish momentum.

Viktoras Karapetjanc, expert at Traders Union, sees fundamental and macro factors working in Occidental Petroleum’s favor despite current weakness. He believes high oil prices above $108 per barrel improve the company’s revenue outlook. Momentum remains mixed, but long-term support is holding for now. As a result, the analyst maintains a constructive stance in the near term. "If oil prices stay elevated and support holds above $57.41, I expect OXY to stabilize and potentially rebound within the projected range."

Earlier, analysts noted that Occidental Petroleum was showing strong bullish momentum supported by robust earnings and positive technical signals. Given the current breakdown below key near-term supports amid mixed momentum indicators, traders should closely monitor the $57.41 level as the next critical threshold for further downside risk.

Source of Data: OXY Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.