Exxon May Be Trying to Break Out
Energy is the only sector with a positive return so far in August. Today’s chart focuses on Exxon Mobil, the biggest and most liquid name in the group.
First consider the trendline along the highs of May 8 and July 3. XOM surged after breaking out and has now come down to hold the same line. Is old resistance becoming new support?
Second, last week’s lows represented a 50 percent retracement of the move from the July low to the August high.
Third, the 8-day exponential moving average (EMA) has remained above the 21-day EMA. That potentially suggests its short-term trend is getting bullish. (Only 21 percent of S&P 500’s members could make make such a claim last Friday, according to TradeStation data.)
Last week’s bounce also occurred at the 50-day simple moving average (SMA), which is additionally trying to turn higher.
These points could make traders look for more gains if XOM can break the falling trendline that’s appeared since mid-August.
Finally, fundamentals may support energy. Crude-oil inventories have been lower than expected the last two weeks and the Strategic Petroleum Reserve (SPR) recently hit the lowest level since late-1983.
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This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
First consider the trendline along the highs of May 8 and July 3. XOM surged after breaking out and has now come down to hold the same line. Is old resistance becoming new support?
Second, last week’s lows represented a 50 percent retracement of the move from the July low to the August high.
Third, the 8-day exponential moving average (EMA) has remained above the 21-day EMA. That potentially suggests its short-term trend is getting bullish. (Only 21 percent of S&P 500’s members could make make such a claim last Friday, according to TradeStation data.)
Last week’s bounce also occurred at the 50-day simple moving average (SMA), which is additionally trying to turn higher.
These points could make traders look for more gains if XOM can break the falling trendline that’s appeared since mid-August.
Finally, fundamentals may support energy. Crude-oil inventories have been lower than expected the last two weeks and the Strategic Petroleum Reserve (SPR) recently hit the lowest level since late-1983.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
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