It may seem like the sky is falling for stock markets these days, but the bullish trend is still very much intact for this energy company.
Take a look at these near-term and long-term support levels holding for XOM:
Exxon Mobil Corporation (XOM): Daily
While most equities are painting the town red lately, shares of energy-related companies are still lookin’ up!
Is it time to buy the dips?This uptrend on Exxon Mobil shares seems to be gaining traction, as price is cruising inside a small rising channel.
Support seems to be holding so far, and the moving averages are hinting that bullish momentum might even get stronger from here. The 100 SMA is increasing its lead over the 200 SMA to show that buyers are flexing their muscles.
However, Stochastic is on the move down to show that a bit of bearish pressure is building up. In that case, XOM might be in for a deeper pullback to the next inflection points.
In particular, the 100 SMA dynamic support around the $80 level might be the next floor. The 200 SMA close to the longer-term rising trend line and $70 mark could be the line in the sand for the uptrend.
Crude oil is on the rise lately, as the prospect of a full EU embargo on Russian fuel could revive global energy crunch concerns. In addition, forecasts of slower U.S. oil production down the line are keeping the commodity supported.
Still, keep an eye out for strong risk-off flows, as investors remain wary of a possible recession in China due to its ramped up zero-COVID policy. After all, this could translate to weaker business activity and supply chain woes, which then weigh on oil demand.
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