Occidental Petroleum shot to prominence in early 2022 as investors embraced inflationary stocks. But it’s gone nowhere since and may be at risk of getting sold.

The main pattern on today’s chart is the pair of converging trendlines. Falling resistance began last November and rising support started in June. Prices are stuck in the narrowing range, with the potential catalyst of earnings tomorrow afternoon. This big event could potentially inject volatility back into the chart.

Next you have the 50- and 200-day simple moving averages (SMAs). While the 50-day SMA is above the 200-day SMA, they give little clear sense of direction or trend. That could mean OXY is neutral over the intermediate and longer terms. If it was bullish and is now neutral, could the pendulum keep swinging toward bearish?

Third, TradeStation data shows energy is the worst-performing sector so far in the fourth quarter after leading in Q3. The most recent economic data has also been non-inflationary -- at the same time that U.S. domestic oil production shoots to record highs.

Finally, consider the chart below of SEDG SolarEdge Technologies. It had a similar triangle pattern and sideways movement before plunging on weak results in August.

SEDG’s decline accelerated after breaking its 52-week low. This could keep attention on OXY’s 52-week low from March. If the oil driller behaves similarly to peers like XOM Exxon Mobil and CVX Chevron after its results, a breakdown could be in the cards.

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