Shares of Exxon Mobil (XOM) – Get a free report on Tuesday was trading about 1.5% higher at the last check. It’s a reverse from a slightly lower open and from a near 3% drop at the low end of the trade.
Mixed trading action follows the integrated oil giant record profit in the fourth quarter.
exxon delivered 65% annual earnings growth and beat top analysts and bottom-line of expectations for the fourth quarter.
Energy space is still easily at its best S&P 500 industry in the past 12 months. And when you look at Exxon’s results, it’s not hard to see why.
Many of these companies are generating huge cash flows. We saw that last week when Chevron (CVX) – Get a free report announce a Plan to buy back 75 billion USD.
With Exxon Mobil stock recapturing a key breakout zone, let’s take a look at the charts.
Trade Exxon Mobil Stocks on Earnings
Daily chart of Exxon Mobil stock.
Chart courtesy of TrendSpider.com
With Monday’s drop and open today, Exxon Mobil stock opened below a key breakout zone of $114 to $115. This level was resistance during October and November and most recently in January.
Stocks’ strong rally on Thursday took it to record highs and above $115, but quickly pull back has cast doubt on the momentum of the bulls.
If Exxon Mobil can close today — and ideally this week — investors are likely to make more profits.
Above $115 holds recent highs near $117.75. If the stock can break through this level, a 161.8% extension from both recent ranges and Effective long term range near $122.25 – call it $122 to $122.50.
If we see that zone, it’s a reasonable profit-taking zone for short-term traders, at least for some positions.
On the other hand, $110 and 50 days moving average is a mainstream in the sand. If the stock breaks this metric – and especially if it closes below this level – that opens the door for more downside.
