Stock of the day: ExxonMobil
06 September 2024
On the commodities market, one of the standout stories has been the significant decline in oil prices, which, as is often the case, has dragged oil stocks down as well. ExxonMobil is a prime example of this trend. The company attempted a breakout to the upside in mid-August amid rising tensions between Iran and Israel, but since then, the price has been on a steady decline.
Most recently, ExxonMobil broke through two critical support levels, signaling further downside. Initially, the price struggled to move above the red resistance level, and following that, it decisively broke below two key supports. The first was the mid-term green, almost horizontal support, followed by the black uptrend line. These two breaches have confirmed a strong breakout to the downside, which brings a clear sell signal for traders.
As long as the price remains below these broken supports, the sentiment remains negative. While a recovery back above these levels could trigger a buy signal, the likelihood of such a reversal happening in the near term appears slim given the current momentum.