Energy stocks have dominated the market this year, but now the biggest of the bunch is showing signs of weakness: Exxon Mobil.
The first pattern on today’s chart is the jump following strong quarterly results on July 29. While that may have been impressive, it soon faded – a potential sign of marginal selling.
Next, the peak was below the $97.77 level where XOM gapped lower on June 13. The result was a lower high versus June 8’s all-time high. Again, not a great sign for people expecting bullish follow-through.
Yesterday’s drop also planted the stock back below its 50-day simple moving average (SMA). Interestingly, that SMA provided support in March, April and May. (See the white arrows.)
Finally, stochastics are slipping from an overbought condition.
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This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
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The first pattern on today’s chart is the jump following strong quarterly results on July 29. While that may have been impressive, it soon faded – a potential sign of marginal selling.
Next, the peak was below the $97.77 level where XOM gapped lower on June 13. The result was a lower high versus June 8’s all-time high. Again, not a great sign for people expecting bullish follow-through.
Yesterday’s drop also planted the stock back below its 50-day simple moving average (SMA). Interestingly, that SMA provided support in March, April and May. (See the white arrows.)
Finally, stochastics are slipping from an overbought condition.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. You Can Trade, Inc. is also a wholly owned subsidiary of TradeStation Group, Inc., operating under its own brand and trademarks. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com/important-information.
