ExxonMobil (XOM): Risk Breaking Below March's Low

Pressure has been mounting on ExxonMobil's share price, as its technical outlook points to a potential new down leg...

Downtrend 5

Pressure has been mounting on ExxonMobil's share price, after the U.S. oil giant posted historical quarterly losses in late July. Furthermore, the company warned that low energy prices could wipe 20% of oil and natural gas reserves off its books. To make thing worse, ExxonMobil was kicked out the Dow Jones Industrial Average in late August.


Meanwhile, the relationship between ExxonMobil's management and its shareholders appears to be uncertain, as major shareholder BlackRock said previously it voted against the company's board of directors for failing to make progress on tackling the climate crisis and "effective corporate governance is lacking".


On a daily chart, ExxonMobil (XOM) is capped by a long-term bearish trend line drawn from January. In fact, it has formed a head and shoulders pattern, with the neckline broken. The level at $40.50 might be considered as the nearest resistance, while the 1st and 2nd support are expected to be located at $30.11 and $23.20 respectively. Alternatively, a break above $40.50 would suggest that the next resistance at $46.40 may be challenged.


Source: Gain Capital, TradingView

More from Stocks

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.