Exxon Mobil Corporation XOM closed up 2.23% higher Thursday, in contrast to the S&P 500, which declined 1.17%.
On Tuesday, Exxon and Chevron Corporation CVX announced a decision to concentrate their projects in the Americas this year, and pull back from projects overseas. The two oil giants also say they have plans to expand into new businesses providing low-carbon technologies to other companies, as much of the world continues to move towards greener energy.
From a technical standpoint, Exxon has been trading in an ascending channel pattern since Dec. 6, making higher lows and higher highs between two parallel trendlines. The pattern is bullish for the short term but can be bearish down the road.
Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.
For bullish traders, the “trend is your friend” (until it’s not) and the stock is likely to continue upwards. Aggressive traders may decide to buy the stock at the lower trendline and exit the trade at the upper trendline.Bearish traders will want to watch for a breakdown from the lower ascending trendline, on high volume, for an entry. When a stock breaks down from an ascending channel, it’s a powerful reversal signal and indicates a steep downtrend may be in the cards.
The Exxon Chart: On Thursday, Exxon bounced up from the lower trendline of the ascending channel pattern and stalled at the median line of the formation. The median line of the channel coincides with the 50-day simple moving average (SMA), which also acts as resistance.
- If Exxon trades higher on Friday, the stock may find further resistance at the upper trendline of the channel. If the stock falls lower, support is likely to be found at the lower trendline.
- If Exxon breaks down from the channel and falls under $104, the uptrend will be negated. Bullish traders want to see Exxon continue to trend higher within the pattern until the stock can eventually rise above $114.66.
- If that happens, Exxon could be in for a larger blue-sky run to new highs. It should be noted, however, that the stock is likely to consolidate under the $115 level for a period of time before reaching new all-time highs.
- Exxon has resistance above at $109.58 and $114.66 and support below at $105.57 and $102.23.
Read Next: Tesla Short Sellers Earned $15.7B In Profits In 2022
Image and article originally from www.benzinga.com. Read the original article here.