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Occidental Petroleum (OXY) Crossed Above the 20-Day Moving Average: What That Means for Investors
Occidental Petroleum (OXY - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, OXY broke through the 20-day moving average, which suggests a short-term bullish trend.
The 20-day simple moving average is a popular investing tool. Traders like this SMA because it offers a look back at a stock's price over a shorter period and helps smooth out price fluctuations. The 20-day can also show more trend reversal signals than longer-term moving averages.
Similar to other SMAs, if a stock's price moves above the 20-day, the trend is considered positive, while price falling below the moving average can signal a downward trend.
OXY could be on the verge of another rally after moving 16.1% higher over the last four weeks. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock.
The bullish case only gets stronger once investors take into account OXY's positive earnings estimate revisions. There have been 6 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.
Investors should think about putting OXY on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.