Does Marathon Oil Look Bullish Or Bearish? You Decide

Marathon Oil Co. (NYSE: MRO) shares are trading higher Wednesday after national oil prices rose following a drawdown in U.S. crude oil inventories.

Benzinga ran a Twitter Survey to see whether or not traders thought the chart of Marathon Oil looks more bullish or bearish. The survey found 60% of participants thought the chart was bullish while 40% thought the chart looked bearish.

Marathon Oil closed up 7.67% at $12.63 on Wednesday.

Marathon Oil Daily Chart Analysis

• The stock looks to be possibly forming into two different pattern types, one bullish and one bearish. The stock is either forming into what traders call a bullish ascending triangle pattern, or a bearish head and shoulders pattern.
• The ascending triangle pattern has seen support along the higher low trendline and resistance near the $14 level.
• The head and shoulders pattern is showing the stock found resistance near the $14 level and then was unable to make a higher high, forming into a possible reversal pattern.
• The stock trades above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock has seen recent bullish sentiment. These moving averages may hold as support in the future.
• The Relative Strength Index (RSI) has been moving higher the past few weeks and sits at 58. This shows there has been more buying pressure entering into the stock at a faster rate than selling pressure.

What’s Next For Marathon Oil?

Bullish traders are looking to see the stock stay above the higher low trendline and work its way up to resistance before breaking out and possibly moving higher.

Bears are looking to see the stock trade in the head and shoulders pattern and finish making the second shoulder. Bears then want to see the stock drop lower after being unable to break above the second shoulder.

Photo: Marathon Oil