XOM Long-term outlook

XOM is one of the blue chip which suffers downtrend since mid’14. The share prices shift direction as it hit $66.55 in 2015 and reach as high as $95.55 last year. Unfortunately, 2017 record a bad performance for the share prices. It started to descend from January high $91.34 and logged only two bullish months out of 8 months.

There is hope in September following a recovery in crude oil prices. However, it might not last long as the recovery incited by lack of supply following series of Hurricane attack in U.S. When the hurricane attack subsides, XOM might continue decline if production back to the full engine.

Click here to see XOM April analysis

New Month

Monthly chart

The price on monthly chart previously slide and close below the downtrend channel. Fortunately, this month the price return back inside the downtrend channel and might indicate further bullish movement in coming months. Although it looks bullish, there is more room downward on the monthly chart where monthly SMA 200 not far from current level.

Weekly chart

The weekly price fell lower and found support near the $75.57. Same as monthly chart view, XOM on the weekly chart might stage a bullish reversal move and target the top of the yellow channel.

Daily chart

Despite the possible bullish view on the weekly and monthly chart, the view on the daily chart is bearish. The share prices are currently testing the daily SMA 100, and if it manages to move above the averages, it will run into stronger resistance SMA 200. As long as the price stays below SMA 200, the trend will continue bearish.

Trade plan

The bullish trade might need to wait until the share prices closed above daily SMA 200. However, an early entry might be possible near the bottom of the yellow channel.

The bearish trade could be taken from daily SMA 100 or daily SMA 200.