EXXON THREE DRIVES PATTERN

Looks like XOM has been progressing through a massive long term three drives pattern since late 2002. If looking for a short-to-medium term investment, long XOM now. The trend has been very consistent and it looks like it is sitting on strong support at the .236 fib line ($80.87ish). Can't see it dropping past that much. If the pattern continues appropriately, a sell point, and if desired, a great short entry will take place in late 2020, near $113.

According to babypips.com, in order for a Three Drives Pattern to be valid, point A should be the 61.8% retracement of drive 1. Similarly, point B should be the 0.618 retracement of drive 2. Then, drive 2 should be the 1.272 extension of correction A and drive 3 should be the 1.272 extension of correction B. I have highlighted each drives relevant fib levels in purple for easy viewing.

Babypips.com also states that 2 rules should be checked to see if they hold true:
1) The time it takes the price to complete drive 2 should be equal to the time it takes to complete drive 3.
2) The time to complete retracements A and B should be equal.
While neither of these rules are true to this specific drives pattern, the trend does not seem invalidated whatsoever.

I'd bet big on this, as XOM is relatively close to the bottom of the wedge channel.

Comment:

ANALYSIS FOR BUY ENTRY:
XOM entered a pennant around 1/19/17. It seems the next best entry for this 3rd and final drive is nearing during these next 2 months. XOM is on its way to testing the top of the pennant. There, it will either break up and resume the longer timeframe uptrend, or fail to pass and head back down to test the bottom of the pennant for what would most likely be the final time. After that I believe it would head for the breakout.

I will update the blue lines and fib lines soon based on elliot wave analysis. For now, those blue lines give a general idea of what might happen.

Comment:

Hit the golden fib perfectly. Likely to bounce off support here.