Energy Stocks have resumed their pandemic recovery Thursday, after the ad surfaced, the Joint Ministerial Monitoring Committee, which oversees The Organization of the Petroleum Exporting Countries (OPEC) production quotas, has ordered an overproduction of countries to catch up with their missed goals of reduction in the last month.
As a result, Iraq and Kazakhstan have agreed to slash output that will see the two in the Middle East oil producers more to comply with OPEC reduction of cut through the rest of the month of June. “Now that Saudi Arabia and Russia have convinced the Iraq and Kazakhstan to comply with, we need to see the overall compliance for the world’s biggest production to more than 100% in the next few weeks,” Price Futures Group’s Phil Flynn told MarketWatch.
Below, we take a closer look at two oil and gas production companies as well as one of the leaders of the energy of the refinery of the company. We will then analyze the graphs to identify the technical levels worth watching.
Occidental Petroleum Corporation (OXY)
Occidental Petroleum Corporation (OXY) product and prospecting of oil and gas in the united States, the Middle East, and Latin America. Earlier this month, Bank of America Securities analyst Doug Leggate upgraded the $ 18 billion independent power producer from “Neutral” to “Buy” based on its ability to meet debt obligations and the prospect of increased cash flow. Leggate also think that the company is a leader in the industry the asset base of primer, benefit from the rise in oil prices. All of Occidental Petroleum’s stock is still down 50% on the year, he won 86.89% over the past three months, as of June 19, 2020.
Since mid-June, the share price is trading in a pennant pattern, which is a support of the top trend of the last three months of the trading range. Traders should consider buying a breakout above the flame, targeting up to around $30.50 – a zone of the action may meet resistance from the end of February countertrend bounce and the 200-day simple moving average (SMA). Protect to the downside by cutting losses if the price fails to hold above the June 15 low at $17.10.
Apache Corporation (APA)
Houston-based Apache Corporation (APA) is engaged in crude oil and natural gas exploration and production, with assets in the united States, Egypt and the united Kingdom. Although the $5.37 billion energy giant reported a first quarter loss of 13 cents per share, the figure was narrower than the 30-cent decline analysts had anticipated, thanks to a 10% increase in farm production in the Permian Basin area. June 19, 2020, Apache stock has a market capitalization of $5.37 billion, offers a 0.72% dividend yield, and has increased by 187% during the last three months.
The shares have broken out of a area of four weeks of consolidation on above-average volume at the beginning of June, but have struggled to gain momentum since. Traders might consider using a recent retracement to the breakout point of the position for the continuation of the progression, setting a profit target near key overhead resistance at $29.50. Manage the risk by placing a stop-loss order below the June 11 low at $12.31, and change the balance if the price closes above the 200-day SMA.
HollyFrontier Corporation (HFC)
HollyFrontier Corporation (HFC) is an independent petroleum refiner in the united States, operating through three business segments: Refining, Lubricants and Specialty Products, and the HEPATITIS virus. The Dallas-based diversified industry-specific risk by the marketing of its products to other refiners, convenience store chains, independent marketers, railroads, governmental entities, and customers of the aviation industry. Analysts have a 12-month consensus price target on the security to $37.64, and that involves 16% of the premium to Thursday’s $ 32.56 to close. In the last three months, the stock has added 47.84%, but it is still the negotiation of more than 30% lower than the year to date as of June 19, 2020. Investors will receive a 4.5% dividend yield.
HollyFrontier shares have an upward trend in an ascending channel since hitting their 52-week low in March. In the recent price action, the buyers have defended the $30 level, where the stock seems to be well supported by the lower channel of the trend line and 50-day SMA. Those who enter here need to anticipate a movement to the opposite side of the trend at around $40. Protect the trading capital, with a stop placed under this month-down to $29.55.