WHAT THE CHARTS SAY

Bullish on Marathon Oil Corp.

Marathon Oil Corp. (Friday’s close US$15.33) declined from US$24.20 in October, 2018, to US$3.02 in April, 2020 (A-B), and then settled in a bullish technical pattern known as a “W” formation (dashed lines). The stock had a breakout form this formation earlier this year (C) and then stayed in a corrective horizontal trading range mostly between US$10 and US$14 (dotted lines). The recent rise above this range signalled a breakout toward higher targets (D). Behaviour indicators including the rising 40-week Moving Average (40wMA) confirm the bullish status. There is good support near US$15. Only a sustained decline below US$13 would be negative. Point & Figure measurements provide targets of US$18 and US$20. The large “W” formation (dashed lines) and the trading range (dotted lines) support higher targets.

Monica Rizk is the senior technical analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled. Chart source: www.decisionplus.com