Stock of the day: ExxonMobil
19 July 2024
ExxonMobil is currently benefiting from the resilience of oil prices, which have managed to resist the broader commodities correction. Since mid-April, ExxonMobil was in a corrective downtrend, forming a wedge pattern marked by red lines. This wedge concluded with the development of an inverse head and shoulders pattern highlighted in yellow. The recent breakout above the neckline, marked in blue, and the escape from the wedge to the upside, has provided a strong buy signal. As long as the price remains above these levels, the sentiment is bullish. However, if the price falls back below these key supports, it would signal a potential sell-off, though this scenario appears less likely at the moment.
The positive sentiment surrounding ExxonMobil is supported by the broader stability in oil prices, providing a favorable environment for continued gains. Traders are closely watching the stock to ensure it maintains its position above the critical levels, which would reinforce the bullish outlook.
Overall, ExxonMobil’s performance is a bright spot in the commodities sector, where other assets are facing significant downward pressure. The stock's current trajectory suggests that as long as oil remains resilient, ExxonMobil is well-positioned to capitalize on this strength and potentially achieve further gains.