Stock of the day: Exxon Mobil

The recent slide on oil reflected in the prices of oil producers, which is a very common type of correlation. Today we will analyze the situation at Exxon Mobil that started in December in a bearish fashion.

For the whole month of November, the price was locked in a sideways trend (yellow) between the resistance of around 115 USD and the support slightly below 108 USD. The price escaped the sideways trend with a move to the downside, which created a mid-term sell signal. The first target was already reached – 104 USD (blue), creating resistance from June and October.

This is a good place for a bounce but for us to become optimistic, we need to see a proper bullish price action first. The other scenario is a possible breakout. A price closing the day below the blue area would mean a legitimate sell signal with a target on either of the two up trendlines (red). In my opinion, the ongoing correction in stocks along with the dropping price of oil is promoting the second scenario slightly more.