Occidental Petroleum (OXY) Fell to its lowest level in more than six weeks following a downgrade from Goldman Sachs.
The Wall Street analyst’s downgrade included a target price change that moved from $54 a share to $45.00 a share. Occidental Petroleum shares traded as low as $45.00 in December.
The move lower follows A bearish pattern that Occidental started in June of 2024. At that time, the stock's 50 day moving average shifted into a bearish trend. Under these technical circumstances it is typical that a stock will move lower two days out of three.
Occidental is known well as one of the stocks that Warren Buffett has been adding to his portfolio for more than three years. For some time, this put it in the favor of short-term traders as they look to piggyback the Buffett effect.
Today, OXY stock is in danger of returning to the $40 price level at which investors started trying to ride Warren Buffett’s tailwind in 2022.
What prices have traded with increased volatility over the last two months as investors try to judge where President Trump's energy policies will take them. This volatility and lack of trend have worked against energy companies like Occidental.
Occidental has spent the last four months trying to hold on to the $50 level as round Number support, that level is now beginning to fail.
For now, with a bearish 50-day moving average and 200 day moving average, investors should expect Occidental Petroleum stock to move below Goldman Sachs’ target price of $45.
The stock is considered technically to be in a long-term bear market trend with a price target of $40.