ExxonMobil is currently in a challenging position, finishing the previous week on local lows. This is particularly discouraging for buyers, especially given that oil prices had a bullish correction in the latter half of last week. Despite this positive move in oil, ExxonMobil has not mirrored this trend, which indicates underlying weakness in the stock's sentiment.
What stands out on the chart is the false breakout above the red resistance line, marked with an orange highlight. The price managed to climb above this resistance briefly but failed to sustain the move, falling back below both the resistance and a key support level. This type of false breakout is a clear bearish signal, suggesting that the recent upward attempt was rejected strongly by sellers.
Given this technical setup, the expectation is for ExxonMobil to move lower, with the potential target set on the blue horizontal support level. This support marks a significant level where buyers might look to re-enter the market or defend against further declines. The current negative sentiment is expected to prevail unless the price can break back above the red uptrend line. However, the likelihood of this bullish scenario unfolding seems low at present.
Traders should watch for any further confirmations of bearish pressure, especially if the stock tests and fails to reclaim the red resistance. A decisive move towards the blue horizontal support would reinforce the bearish outlook.