OXY - a bullish setup for the ages

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.

Comment:

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.

Comment:

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.