
Following a disappointing fourth quarter earnings report shares of Exxon Mobil went into the tank. Six straight loses later the stock was off 17% from the February 1st peak leaving an ominous spike high behind in the process. XOM has drifted lower since the initial post earnings flush but further downside has been limited. Despite the easing downside momentum the stock did put lower monthly lows in March and April. But as this week progresses some positive signs are developing.
Trading Notes:
XOM made a new 2018 low on Monday. At mid day(+1.2%)the stock is trading above last week’s high, a close tomorrow above $75.00 would complete a key upside reversal in the weekly charts.
A divergent low has been building in the daily MACD indicator for the last six weeks.
Selling pressure has been easing since Feb. 23(Friday).
XOM is bumping up against a very solid supply area(2017 lows-3/7 breakdown gap). This is the first real overhead challenge for the stock since the beginning of March.
A clear take out of the $76.00 area would be very encouraging.
On the downside, a close back below $74.00 would indicate more basing is ahead.
We are long XOM in most managed accounts.