Exxon Mobil Corporation (NYSE: XOM)

Exxon Mobil Corp. engages in the exploration, development, and distribution of oil, gas, and petroleum products. It operates through the following segments: Upstream, Downstream and Chemical. The Upstream segment produces crude oil and natural gas.

Take a look at the 1-year chart of Exxon (NYSE: XOM) with the added notation:

XOM has formed an important level of support at $66 (green) over the past 5 months. The stock has repeatedly tried to rally off the mark, and now that it has fallen back down to the $66 level again, another bounce has followed. If the $66 support were to break, lower prices should follow for XOM.

The Tale of the Tape: XOM has key support at $66. A trader could enter a long position at or around $6 with a stop placed under the level. If the stock were to break below the support, a short position could be entered instead.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!
Christian Tharp, CMT