Understanding Technical Signals From Marathon Oil Corporation (NYSE:MRO)

Marathon Oil Corporation (NYSE:MRO) fell by -0.14% in Thursday’s trading session from $13.90 to $13.88 The stock price went upward in 8 of the last 10 days and has generated 9.03% during the last two weeks. There was a decrease in both volume and price. This is usually interpreted as a good sign as traders widely believe falling stock should see declining volume. Traded activity experienced a fall of -3.18 million shares and in total 11.09 M shares exchanged hands for about $153.93 million.

Inside MRO’s Recent Trend

Marathon Oil Corporation (MRO) lies in the upper part of a wide and weak rising trend in the short term, and this will normally pose a very good selling opportunity for the short-term trader as reaction back towards the lower part of the trend can be expected. A break-up at the top trend line at $13.92 will firstly indicate a stronger raising rate. Short-term traders are predicted to see a rally of 9.87% over the course of a quarter and, with 90% chance the price will be floating in the range of $12.53 and $15.29 in this timeframe.

Marathon Oil Corporation Technical Signals

MRO has witnessed its long term and short term MA triggering a buy signal. Many traders watch for short-term averages to cross above long-term averages to signal the beginning of a uptrend. Upon corrections, the price will meet support from the averages between $13.71 and $12.03. A break down through these support points will trigger sell signals. Some other technical concerns emerged as well, putting in risk the future growth of the stock in the next couple of days. Its pivot point high generated sell signal on Wednesday October 04, 2017, which calls for additional declines until the stock forms a new pivot point low, as this could be a buying opportunity. The downbeat movement of both volume and price during the recent session is interpreted as a good sign because traders usually believe falling stock should see declining volume.

Marathon Oil Corporation (NYSE:MRO) Support And Resistance Levels

In case of pullback, the next support the price will capture from accumulated volume will not be far away from current price at $12.51 and $11.59. In case of gains, the next resistance from accumulated volume will not be far away from today’s level at $13.90.

It is important to note, however, that the stock needs to make its way through natural risk while testing a key support level. Once this support is broken, another support level will be to be established at a lower level. Turning back to this stock, Marathon Oil Corporation approaches the first support point just current price at $12.51. In case of a break, the next support we will see from accumulated volume is going to be at $11.59 and $10.87. Accumulated volume is going to prevent the price from rising further at $13.90 and this action will lead the price to take a temporary pause or stay muted for a few days.

Marathon Oil Corporation (MRO) Risk Assessment

A volatility based measure Bollinger Bands suggests this stock poses high risk. In the most recent session, the stock price hovered around $0.27 between high and low, or 1.96%. The average volatility for the past week stood at 2.51%.

The stock is in overbought condition based on RSI(14) readings and sits at the top end of the trend. In general, this offers great exit point for the short term traders. The RSI above 70 combined with the trend position poses greater risk so increased volatility should be expected. The stock correction is due. The decline may accelerate to the downside in the near term but it is reasonable to consider what the key support levels may be that would support a bounce back to the upside for stock.

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