Is Exxon Mobil prime for a trend reversal after 280% rally?

On 8th November 2022, shares of Exxon Mobil reached a high of 114.66$, marking over a 280% increase since their lows in March 2020. The company has enjoyed this two-year lasting rally thanks to the growing prices of oil, which translated into growing corporate earnings during this period. However, with oil prices peaking in the first half of 2022 and worsening economic conditions around the globe, shares of XOM might be positioning themselves for a trend reversal. In addition to that, the U.S. government seeking to increase taxes on oil producers also does not help the situation. Therefore, we will closely monitor the price action. We want to see the price break below the immediate support/resistance level and a pick-up in volume to support our thesis. With that outlined, we want to set a price target for XOM at 90$ per share.

Illustration 1.01

Illustration 1.01 displays the weekly chart of XOM. Volume can be seen declining for the past eight months while the price kept rising. That hints at fewer investors willing to buy the stock at elevated levels.

Technical analysis
Daily time frame = Bearish
Weekly time frame = Bullish but losing momentum

Illustration 1.02

Illustration 1.02 shows the daily chart of XOM and 200-day SMA.

Please feel free to express your ideas and thoughts in the comment section.

DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.

Handel aktiv:

We maintain our price target of 90$.

Handel aktiv:

There is no change in our stance. Oil selling off is a positive sign.