With crude oil and natural gas prices falling over the last week, shares of some energy producers have started to weaken relative to stocks from other sectors. Energy giant Exxon Mobil (XOM) has had its ups and downs in the SIA S&P 100 Index Report in recent months.
After spending most of the first half of the year in the green zone, XOM dropped into the Yellow Neutral Zone turning into the summer. In September-October it clawed its way back up into the green zone but after a drop of 6 spots yesterday and 19 positions in the last month, it has returned to the Yellow Neutral Zone and is currently in 30th place.
The only remaining Energy stock in the green zone of the SIA S&P 100 Index Report is ConocoPhillips (COP) which fell 4 spots yesterday to 10th place. Exxon Mobil (XOM) shares have weakened considerably technically in recent weeks, with lower highs establishing a new downtrend, and the shares falling below their 50 and 200-day moving averages. This month, they have staged a breakaway gap to the downside which snapped an uptrend line and completed a bearish Rising Wedge pattern. Combined, these indicators suggest that the shares have come under increasing distribution.
Based on previous lows, initial downside support may appear near $96.00 followed by the $80.00 to $84.00 range. Initial resistance on a rebound may emerge at the 200-day moving average near $108.50.
A major breakdown appears to be underway in Exxon Mobil (XOM) shares. Last month, the technicals had been looking good with the shares breaking out to new highs, but in recent weeks that has reversed. Starting in October and accelerating downward into November, the shares have established a new downtrend of lower highs, completed a bearish Quadruple Bottom breakdown followed by a bearish Double Bottom to create a Bearish Catapult, and snapped an uptrend line, all combining to signal the start of a new downtrend.
Next potential downside support may appear near $96.55 then $90.95 based on vertical and horizontal counts. Initial resistance on a bounce may appear near $107.75 based on a 3-box reversal.
With a bearish SMAX score of 3, XOM is exhibiting weakness against the asset classes.
Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.
