Chart of Day: Occidental Petroleum (OXY)
Warren Buffett’s Berkshire Hathaway just bought more shares of Occidental Petroleum (OXY).
In fact, after OXY pulled back about 30% from its high, the firm picked up another 763,017 shares for just over $35.7 million. That follows the firm’s 8.9 million share purchase in December on another pullback.
While there’s speculation of a potential takeover, that’s not likely. As Buffett told shareholders in a 2023 letter, “Though we very much like our ownership, as well as the option, Berkshire has no interest in purchasing or managing Occidental. We particularly like its vast oil and gas holdings in the United States, as well as its leadership in carbon-capture initiatives, though the economic feasibility of this technique has yet to be proven. Both of these activities are very much in our country’s interest.”
Oversold, OXY is also starting to pivot higher from double bottom support. It’s also starting to push higher from over-extensions on RSI, MACD and Williams’ %R. From. Its last traded price of $48.61, we’d like to see OXY initially retest $53.20.
Moving forward, we wouldn’t be shocked if Berkshire bought more OXY on dips.
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