Stock Market

Can The Stock Break To New All-Time Highs? By Benzinga



© Reuters. Exxon Mobil Stock Consolidates Lower: Can The Stock Break To New All-Time Highs?

Benzinga – Exxon Mobil Corporation (NYSE: XOM) opened down on Monday, in tandem with crude oil futures, which were consolidating lower.

On Friday, Exxon reached a new all-time high of $119.63 after breaking up from a rising channel pattern on the daily chart. The stock didn’t receive bullish momentum on Monday, however, and dropped back into the channel.

Shares have been trading in an ascending channel since Dec. 6, making higher lows and higher highs between two parallel trendlines. The pattern is bullish for the short term, but can be bearish down the road.

  • For bullish traders, the “trend is your friend” (until it’s not) and the stock is likely to continue upwards. Aggressive traders may decide to buy the stock at the lower trendline and exit the trade at the upper trendline. If the stock breaks up from the pattern and holds above the level, it can signal that a steeper uptrend may be in the cards.
  • Bearish traders will want to watch for a breakdown from the lower ascending trendline of the pattern, on high volume, for an entry. When a stock breaks down from an ascending channel, it’s a powerful reversal signal and indicates a steep downtrend may be ahead.

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The Exxon Chart: In addition to the rising channel pattern, Exxon was also printing an inside bar pattern on Monday. The inside bar leans bullish in this case because although Monday’s range was near the bottom of Friday’s range, Exxon was trading higher before forming the inside bar and is in need of consolidation.

  • Exxon was working to print a hammer candlestick on the daily chart, which may indicate Monday’s low-of-day is the next higher low within the stock’s uptrend, which is bullish. The most recent confirmed higher low was formed on Feb. 2 at $109.83 and the most recent higher high was printed on Friday at the all-time high.
  • If Exxon is able to break up from the rising channel pattern later on Monday or on Tuesday, bullish traders will want to see the stock make a new all-time high over the next few days to confirm the uptrend is still intact. Bearish traders want to see the stock break down from the inside bar pattern and then for big bearish volume to come in and drop the stock down toward the lower trendline.
  • Exxon has resistance above at $119.63 and support below at $114.66 and $109.58.

Read Next: Biden Targets Meta, Exxon, Others For Enriching Wall Street Using A Special Tactic

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© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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