Exxon Challenges Short-Term ResistanceExxon Mobil rallied in March and early April. Now, after a pullback, some traders may expect further upside.
The first pattern on today’s chart is the falling trendline along last month’s highs. The energy giant closed above it on Friday, which could be considered a potential breakout.
Second, the low on May 3 occurred near a 50 percent retracement of the preceding advance. Does that confirm the movement of travel is to the upside?
Third, the 50-day simple moving average (SMA) had a “golden cross” above the 200-day SMA in early April. That may suggest its longer-term trend is getting bullish.
Fourth, the 8-day exponential moving average (EMA) is back above the 21-day EMA. MACD could also be attempting a positive cross. Those signals may suggest the short-term trend is getting more bullish.
The fundamental backdrop could additionally be more favorable as China looks to support its real-estate market. Crude-oil inventories were also tighter than expected last week.
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