Will Marathon's Charts Keep Running to the Upside?
A period of sideways price action might be next.
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Marathon Oil MRO was rated a new fundamental overweight (buy) at Barclays Wednesday with a $35 price target.
Let's check out the charts and indicators of this energy play to see if we want to commit to an investment.
In this daily bar chart of MRO, below, I can see that prices have made a nonstop rally from a low in February. MRO trades above the rising 50-day moving average line and above the rising 200-day line too. The trading volume looks like it has increased its pace since early February.
The On-Balance-Volume (OBV) line began an upswing in January and tells us that buyers of MRO have been more aggressive than sellers so far this year.
The Moving Average Convergence Divergence (MACD) oscillator is in a bullish move above the zero line but there is some narrowing beginning telling us to be a little cautious.
In this weekly Japanese candlestick chart of MRO, below, I can see that prices are in a large sideways consolidation or continuation pattern. Prices are expected to breakout on the upside and continue the prior trend which was up.
MRO trades above the rising 40-week moving average line. The weekly OBV line shows us a positive trend the past three years. The MACD oscillator has recently moved back above the zero line for an outright buy signal.
In this daily Point and Figure chart of MRO, below, I can see that prices have reached a price target in the $25 area.
In this weekly Point and Figure chart of MRO, below, the software is projecting a potential target in the $44 area.
Bottom line strategy: MRO has made a strong upside run so a period of sideways price action should be expected. Traders could start to probe the long side of MRO in the $29 area risking to $27. The $44 area is my longer-term price objective.
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