As Warren Buffett Rumors Swirl, Occidental Petroleum Stock Just Formed a Golden Cross Pattern

Occidental Petroleum (OXY) shares closed higher on Wednesday following rumors that Berkshire Hathaway (BRK.A) (BRK.B) plans on buying its petrochemical division, OxyChem, for about $10 billion. 

Investors also likely rushed into OXY today because it formed an intriguing golden cross pattern for the first time since April 2024 – indicating bullish momentum ahead. 

Including today’s gains, Occidental stock is up more than 35% versus its year-to-date low in April.

OXY Shares’ Golden Cross Is Doubly Significant

The golden cross is typically characterized by the 50-day moving average crossing above the 200-day moving average. Historically, it signals the beginning of a longer-term uptrend. 

In the case of OXY stock, this technical formation gains additional significant given the Berkshire development. 

This bullish indicator is particularly noteworthy following Occidental shares’ recent consolidation phase, as such patterns often carry more reliability when they emerge after periods of base-building. 

Moreover, the convergence of moving averages has occurred with relatively low volatility, which often precedes sustained directional moves.

What Berkshire Deal Would Mean for Occidental Stock

For Houston-headquartered Occidental Petroleum, the potential sale of OxyChem to the Warren Buffett conglomerate would mark a strategic pivot that would reduce its massive debt burden of $24 billion.

The transaction would represent Berkshire’s largest acquisition since its $11.6 billion purchase of Alleghany, and its second major investment in the chemicals sector in nearly 15 years.

It will deepen the conglomerate’s existing ties with the oil giant, in which it already has about 28% stake valued at nearly $13 billion. 

OxyChem’s robust performance, generating roughly $5 billion in revenue for the 12 months ending June 2025, makes it a rather attractive asset for Berkshire’s portfolio. 

All in all, the combination of technical strength indicated by the golden cross and the fundamental catalyst creates a compelling setup for potential upside in Occidental shares. 

Wall Street Doesn’t See Significant Upside in OXY

Despite the golden cross formation and the potential OxyChem sale, Wall Street isn’t particularly bullish on OXY stock. 

According to Barchart, the consensus rating on Occidental Petroleum stock currently sits at “Hold” only with the mean target of roughly $50 indicating potential upside of only 5% from here.