Marathon Petroleum shares hit low after US politicians target oil concerns

Since the start of June, Marathon Petroleum (MPC) shares have steadily decreased in value as US politicians inflict excessive strain on large oil concerns like MPC. Late trading yesterday saw the MPC shares reach their lowest since March; they had [...]

The price of MPC stock has been declining due to the pressure from the government on big oil companies, which was last seen trading at $78.81, after it had fallen to its lowest level since March. However, the equity could soon resume its climb as it is nearing a historically bullish trendline following its latest pullback. 

According to the latest study by Quantitative Analyst Rocky White, MPC is one standard deviation above its 160-day moving average. The security has given three similar signals in the past three years, and every time it was higher a month later, averaging a 6.4% gain for that period. A similar move would take Marathon Petroleum stock back above $83.

  Refinitiv Eikon
Refinitiv Eikon

The RSI of MPC, which stands at 24.1, indicates that the stock is oversold. This means that a short-term rebound is expected soon.

Options could be a good way to express an opinion on the oil stock. The security's Schaeffer's Volatility Scorecard (SVS) is at 91 out of 100, which means that MPC has exceeded option traders' volatility expectations over the past year.The SVS is a measure of how much the price of an asset moves up and down in response to market surprises, and it can be used by investors as a guide for when they should buy or sell options, depending on whether they're bear