What’s Next for Exxon Mobil?

May 14, 2015 Updated: April 23, 2016

What’s Next for Exxon Mobil?

Blue chip stocks in most sectors continue to press forward in the positive direction.  But some stock sectors appear to be more vulnerable to pullbacks than others, and for this reason it is a good idea to identify some of the stocks that could be impacted if is year’s bull run starts to change course.  One of these sectors can be found in the energy space, which is often subject to massive changes in the underlying price of oil.  Anyone that has been following energy markets over the last year knows that we have seen significant declines in the price of oil over the last year, so it will be interesting to see how these emerging trends will impact stocks like Exxon Mobil Corp. (NYSE: XOM).

“Exxon Mobil is one of the most commonly traded stocks in the market, and one of the clearest choices for expressing market views in the energy space,” said Tyler Stevens, market analyst at Media Group WW.  “It is also a closely watched dividend stock, so there are some real questions that should be asked here with respect to how later trends might unfold in the coming months.”  As oil prices have dropped, we have also seen some significant declines in the value of this stock, so it is a good idea to get a sense of the best support and resistance levels that can be used to make new trading stances in XOM.

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Exxon Mobil Corp. (NYSE: XOM)

Critical Resistance:   91

Critical Support:   84

Trading Stance:  Sideways to Bearish

Exxon Mobil Corp. / XOM Stock Trading Strategy:  Declines in XOM appear to have abated but we are still looking at a sideways forecast until resistance at 91 is overcome.

The main trend in XOM has been to the downside but we are starting to see some stabilizing activity in the mid 80s.  This does bode well for the stock in the months ahead but until then we are likely to experience a sideways trading scenario unless resistance at 91 is overcome.  This makes the stock a better candidate for options trading, rather than in more traditional long and short strategies that are typically employed.  The Daily RSI indicator is actually showing an oversold reading, so the advice is to avoid long exposure until the indicator reading is able to correct itself.  In any case, we are likely to see more of the same when trading XOM in the next quarter.