OXY is in stage #3. It bounced off its support at $62 a share and now going higher. It is also sitting at the 50-day MA support (on the daily and weekly chart). It may continue going higher until $73 level again.
Based on the valuation of the company trading significantly below its fair value, the stock still may go higher, but I do not expect it. The fair value in 2022 was estimated at $148 a share, and the stock failed to reach it. The 2023 fair value is calculated at $111 a share and earnings are expected to be dropping in 2023 (-33%), 2024 (-21%), and 2025 (-18%). With declining oil prices, declining earnings, and fair value estimates, I expect the stock to start declining too.
The stock is now SELL
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