Check this setup on $OXY – August 19, 2022
OXY
I want to look at OXY ( NYSE: OXY ) here. This morning I sent out an email to our members suggesting that you buy this stock. I put it on the Active Trade List. I caught it, actually, a little bit later than I would like to have and that was at $67.00. Now, it turns out it’s a pretty good trade, so far we are up 5-6 percent, something like that.
I want to explain to you how I caught it and wasn’t in the news flow where Warren Butfett or Berkshire, has filed asking permission, which I assume is with the FCC, to buy 50 percent of the shares of Occidental Petroleum ( NYSE: OXY ) on the secondary market, meaning from you and me.
I don’t know whether that was the start of the run because there we so many other stocks that were setting up the same way, I covered them in a video dedicated to energy stocks just last night. This was one of them, I was talking about that setup, such that I had actually set an alert so that I would know if OXY ( NYSE: OXY ) broke out. There were a few others as well, but this was the main one that got hit, and so it did.
I jumped into the stock and it is all good. Fine, yay for me and yay for our members. But this is what I wanted to explain to you, a lot of times stocks will move prior to the news just because of insider trading and all that. We can’t really base a trading strategy on that. We can’t base our trading on that, we have to base it on technicals.
On an intraday basis if you are looking at this, if you just happen to be looking at this stock, you are seeing this squeeze here. You are seeing the way this is trading, tightening, and then finally it’s breaking out. So you are getting into it there, and that’s if you are using intraday charts but you really don’t have to. I prefer not to, I think they get really noisy.
The way this was trading yesterday, and there were several others, as well, that were looking similar, this was the setup, right here. Buffett’s deal, that’s just the icing on the cake. But the setup was here and once the stock was breaking out above this next level, that’s when you look to buy the stock. I just kind of got lucky on that, but I will tell you this if you are not long the stock I think you would definitely want to buy it on Monday.
Who knows, maybe there is going to be a news announcement but maybe not, I have no way of knowing. I would say this, if the stock pulls back on Monday, maybe it’s a crappy open or something. I would take that as a gift because it is not like Buffett is going to pull an Elon Musk and say, I changed my mind. This stock is ultimately going higher. The only question is, are you going to be a buyer?
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