XOM, Massive Intertwined Head And Shoulder Formations Forming!

Hello Traders Investors And Community, welcome to this analysis about the stock value EXXON and its current status on the monthly timeframe perspective, the massive formations which can be derived from it and what to expect from the stock the next times. As I pointed out in previous analysis the corona crisis has opened huge gaps in the economy where real economy struggling with setbacks in growth of economy, in this crisis there were winners which held strong and recovered healthily and there are stocks which did not manage to recover mainly to previous levels, not to mention that the crisis has caused a long-lasting set back in economic growth where the bearish market environment is still not confirmedly over, many people already called for the complete bullish continuation in the main market and major indices but this can not be considered currently one hundred percent for sure as individual stocks and main indices showing.

Looking at my chart you can watch that XOM formed a huge bearish head and shoulder top formation which confirmed already in January this year before the huge corona breakdowns dragged the markets to the downside in February this year, the fact that XOM showed already bearishness before the corona breakdowns began confirmed them much more. In the last weeks, the stock is marginally recovering where it forms the right shoulder of the second and bigger head and shoulder formation you can watch marked in my chart with the grey trendline neckline. When this neckline is broken to the downside and the huge head and shoulder formation confirmed this will cause extreme bearish pressure and visit of low levels which are near to nowhere and therefore possible for consideration in the short-side when the neckline does not hold and the stock confirms it as support the bearish scenario will play out with a decisive confirmation below neckline.

In comparison with the main market, major indices and single stock values this stock is definitely in a weaker state than the rest market although it is a stock within the large market-caps it can increase further bearishness, in a fundamental perspective the significant oil price crashes seen this year can also be a factor for the established breakdowns seen in this stock as it is connected to the oil industry which experienced supply and demand shocks before the oil price fell to zero. The next times will be crucial for this stock and will show if it can recover or fall below the neckline and more bearish pressure will follow. Together with this huge head and shoulder formation, the real oil price can be a source for contemplation where the journey is heading because when oil bearishness increases again this can affect also stocks in the industry, in this case, it is important to not deny the established bearish environment here in order be prepared for volatile downside movements and to realize opportunities possibly coming up on short-sides.

In this manner, thank you for watching, support for more market insight and have a good day!
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Information provided is only educational and should not be used to take action in the markets.