Earnings

Understanding Technical Signals From Exxon Mobil Corporation (NYSE:XOM)

Exxon Mobil Corporation (NYSE:XOM) gained 0.28% in yesterday’s session, going up from its prior closing price of $81.79 to $82.02, and has now recorded rally in 4 consecutive sessions. Many in the market will be closely watching whether this winning streak is sustainable or take a temporary pause for the next couple of trading sessions. The stock price went upward in 7 of the last 10 days and has generated 2.67% during the last two weeks. The upbeat movement of both volume and price during the recent session is interpreted as a good sign, and, overall 0.97 million more shares exchanged hands compared with prior day. In total, 7.24 M shares exchanged hands for about $593.46 million.

Inside XOM’s Recent Trend

Exxon Mobil Corporation (XOM) is the upper part of a horizontal trend and normally this would pose a good selling opportunity, but a break-up through the top trend line at $82.19 will give a strong buy signal and a trend shift may be expected. Given the current horizontal trend you can expect Exxon Mobil Corporation with 90% probability for the price to range between $76.10 and $82.19 in this timeframe. Investors sometime notices large volume spikes after a breaking of the horizontal base, and stocks rarely experience a roller coaster ride from the bottom of a trend. Stocks jumping at a middle end of a horizontal base are therefore followed in search of a potential runner.

Exxon Mobil Corporation Technical Signals



XOM has witnessed its long term and short term MA triggering a buy signal. Many traders watch for short-term averages to cross above long-term averages to signal the beginning of a uptrend. Upon corrections, the price will meet support from the averages between $81.83 and $79.01. A break down through these support points will trigger sell signals. There was increase in both volume and price. This is usually interpreted as a good sign as traders widely believe rising stock should see increasing volume. Some other technical concerns emerged as well, putting in risk the future growth of the stock in the next couple of days. Its pivot point high generated sell signal on Thursday September 28, 2017, which calls for additional declines until the stock forms a new pivot point low, as this could be a buying opportunity.

Exxon Mobil Corporation (NYSE:XOM) Support And Resistance Levels

Exxon Mobil Corporation (XOM) recorded volume accumulation so there will probably be a surplus of buyers at $80.60. In case of gains, the next resistance from accumulated volume will not be far away from today’s level at $82.19.




Accumulated volume is going to prevent the price from rising further at $82.19 and this action will lead the price to take a temporary pause or stay muted for a few days.

Exxon Mobil Corporation (XOM) Risk Assessment

The number of shares changed hands in the stock is good, indicating the interest and low risk associated with it. In the most recent session, the stock price hovered around $0.65 (0.80%) between intraday high and intraday low. Each day in the past 1 week, the average volatility remained at 0.69%.

The stock is in overbought condition based on RSI(14) readings and sits at the top end of the trend. In general, this offers great exit point for the short term traders. The RSI above 70 combined with the trend position poses greater risk so increased volatility should be expected. The stock correction is due. The decline may accelerate to the downside in the near term but it is reasonable to consider what the key support levels may be that would support a bounce back to the upside for stock.

 

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