Ian Cooper’s Stock Pick of the Week

Chart of Day: Occidental Petroleum (OXY)

Keep an eye on Occidental Petroleum (OXY).

After pulling back from about $71, Berkshire Hathaway bought another 2.6 million shares, lifting its stake in the oil company to 250.6 million. We’ve often said that each time OXY dips, Buffett and Co. are likely to buy more, as we’ve seen again.

“Berkshire bought the stock, valued at more than $150 million, on Wednesday through Friday and paid just under $60 a share, according to a Form 4 filing with the Securities and Exchange Commission,” as noted by Barron’s.

Technically, OXY appears to have caught strong support dating back to February. It’s also over-extended on RSI, MACD and Williams’ %R. From its last traded price, we’d like to see it initially retest $64 a share. Longer term, with summer driving season and geopolitical tensions still flaring up, we’d like to see OXY closer to $70.

Ian Cooper is an experienced trader who uses a combination of technical, fundamental, and news analysis to help individual investors grow their wealth. Ian’s Premium Options Strategies

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