Marathon Oil is certainly one stock to have on the radar right now and for several reasons, based on the daily chart, but also across the other timeframes, so let’s start with the monthly chart which features the all-time high for the stock at $66.25 back in 2007! It is always tempting to think such a price can perhaps be achieved once again in the longer term particularly with the price languishing at $3.02 in the latter part of 2020. A tempting proposition indeed and one which has delivered to date with the stock rising to trade at $13.85 as of yesterday’s closing price. What is clear from this timeframe is the accumulation volume which has been building since mid-2020 and into 2021 as we start to see the new campaign begin to build with the price moving back to the volume point of control at $13.25 per share. More importantly, the price has broken through stiff resistance as denoted with the blue dashed line of the accumulation and distribution indicator and now looks set to develop further. However, ahead we have a significant level of resistance at $17 per share and denoted with the thick red dashed line. So from a monthly perspective, this is a key level, but if this level is breached the VPOC histogram falls away as we move towards $20 and on towards $25 per share giving us a longer-term perspective.
Moving to the daily chart we get a close-up view of the current price action and volume and here the governing factor at present is the volatility candle of the 1st June which propelled the price away from the VPOC on this timeframe at $11.50 per share and up towards the $14 per share level. Since then the price has oscillated within the spread of the candle as expected, continually testing the $14 level which is now significant, not only for these failures but also because the volume on the VPOC histogram falls away to a low volume node beyond and therefore offering little in the way of resistance moving forward.
So the key here is patience as we wait for the price to break through this level and once clear, on towards the $17 per share price outlined above, but as always with associated steadily rising volume.
By Anna Coulling
Charts from NinjaTrader and indicators from Quantum Trading
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