Asset Watch
Thursday, August 11 2022
However, with a big move likely on the horizon, the technicals signal a large gain or loss awaits Buffett over the next month. Occidental Petroleum has made lower highs and higher lows over the last two months. As a result, a symmetrical triangle has formed, and the pattern often precedes sharp moves in either direction.
The last time the pattern emerged from March to June 2020, Occidental Petroleum broke higher and recorded a more than 50% gain before rolling over. However, that jump was off the COVID-19 lows, so it had already declined substantially.
But similarly, Occidental Petroleum recouped its 50-day moving average before the material spike in 2020, and the stock also achieved that milestone on Aug. 9.
So, should you follow Buffett or fade the rally?
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