Energy stocks have had a volatile start to 2020 amid the rise and fall of U.S.-Iran tensions, and Marathon Petroleum Corp (NYSE:MPC) is no exception. The oil name is facing off with its year-over-year breakeven point above, while also receiving support from the formerly resistant $57 mark. What's more, data from Schaeffer's Senior Quantitative Analyst Rocky White suggests MPC may be flashing a buy signal as it nears a historically bullish trendline.
Specifically, Marathon Petroleum stock has recently come within one standard deviation of its 200-day moving average, following an extended period above the trendline. The equity has seen three similar pullbacks within the past three years, which has resulted in an average 21-day gain of 10.4%, with all three returns positive. Another move of this magnitude from the stock's current perch of $60.55 would catapult MPC back near $67 for the first time since early November.
Analysts have been heavily optimistic toward MPC's journey on the charts. Coming into today, all but two of the covering firms sport a "buy" or "strong buy" recommendation. What's more, the stock's average 12-month price target of $79.81 comes at a 31% premium to current levels.
However, short sellers have been heading for the exits. Short interest dropped a notable 11.7% during the past two reporting periods, and now accounts for a slim 2.3% of MPC's total available float. At Marathon stock's average pace of daily trading, it would take shorts just over two days to buy back their bearish bets.