Yesterday, Exxon Mobil Corp stock (NYSE: XOM) opened its trading day with a gap to the upside, this way breaking above the medium-term downside resistance line taken from the high of April 23rd. That said, the stock was not able to maintain its gains and closed Monday’s trading in the negative territory. XOM is also currently trading above its short-term tentative upside support line drawn from the low of September 3rd. Looking at the technical picture on the 4-hour chart, we believe there is a chance for a further move higher, but we will examine higher levels if we see a clear break through yesterday’s highs. For now, we will take a cautiously-bullish approach, at least in the short run.
As mentioned above, for us to start considering higher areas, we need to see a push above yesterday’s high, at 75.07. This way the path towards the 75.66 zone would be open. That zone acted as a good resistance area on July 31st. But if the price rises above the 75.66 barrier, this is where more buying could come in and XOM might travel higher, possibly targeting the 77.04 hurdle, marked by the inside swing low of July 11th. Initially, the stock may stall around there, or even correct back down a bit. But if it continues to trade above the aforementioned upside support line, XOM might accelerate again to the upside, bypass the 77.04 area and target the 77.90 level, marked near the highs of July 1st and 12th.
Alternatively, for us to examine the downside again, a few criteria would have to be met. We would need to see a break, not only below the previously-discussed downside line, but also a break of the above-mentioned upside line. For additional confirmation of the downside, a price-drop below the 71.55 zone could force a few investors to liquidate on some of their current positions. This way, the stock could slide further, potentially aiming for the 70.41 obstacle, a break of which may set the stage for a test of the 69.07 mark, which is the inside swing high of August 30th.
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