3 Bullish MACD Crossovers In The Energy Sector

One of the common technical indicators that analysts watch for in stock charts is the MACD crossover. MACD is an acronym for moving average convergence/divergence and is a line included with a stock’s chart that is calculated by subtracting a stock’s 26-day exponential moving average (EMA) from its 12-day EMA.

When the MACD line (the black line in the charts below) crosses above the “signal line” (a nine-day EMA of the MACD and the red line in the charts below), technical analysts view this crossover as a bullish technical signal indicating upward momentum. With many traders away from the market on this holiday week, here are three MACD crossover stocks in the Energy sector that may be flying under the radar for now.

Occidental Petroleum Corporation OXY

Occidental’s recent volatility has produced some false MACD crossovers in recent months, but the most recent crossover appears to be the neatest one since the one in early October that coincided with a move in share price from around $64 to $76. To add to the technical confusion, Occidental also recently experienced the dreaded bearish death cross, so it’s hard to be too bullish at this point.

Apache Corporation APA

Again, Apache’s last clear bullish MACD crossover occurred back in early October and resulted in a share price move from under $37.50 to above $55 in the six weeks that followed. If Apache can make it above its 50-day simple moving average (SMA) at around $47, it would be an indication that a move much higher could follow.

Total SA (ADR) TOT

Total is another stock sending mixed technical signals. The MACD crossover looks very bullish, but the death cross is very bearish. The stock will likely also face strong resistance at the level at which the death cross occurred.

Disclosure: the author holds no position in the stocks mentioned.