Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
Xom stock price has been stuck in a narrow consolidation zone ranging between $101.50 and $108.75 since the middle of May. The stock price saw a surge after it rejected $98 and started to rise in March. The bullish rally led to the formation of an annual high as well as an all-time high at $119.92.
As soon as price formed all-time high, bears entered the market. The quarter 1 earning results of Exxon were also released on 28 April which were positive as the company was able to beat the consensus estimates of revenue and earnings per share. However, huge oil and gas companies cannot really escape the macroeconomic situation.
The potential for the Federal Reserve to hike interest rates into a weakening economic picture caused oil prices to plunge which led to a fall in stock prices of oil and gas businesses. The last candle closed as a bullish candle which means that Xom stock price might again retest the resistance level of $108.75. If bulls can push price above $108.50, then it might retest the all-time high and potentially shatter its rise further.
Quarter 2 Earning Result Possibility Of Exxon Mobil
The Xom stock price is trying to stay above $100. If bears take control and push price below $100 and minor support of $98, price might head down toward $90. Quarter 2 earning results will be released on 28 July. The consensus estimates the revenue to be 90.78 billion and earnings per share to be $2.21.
The Texas-based company has warned about falling natural gas prices, lower margins, and soft demand can cut down billions in its second-quarter earnings. In the worst-case scenario, earnings could drop to $6.2 billion, nearly half of what it made in Quarter 1. Falling natural gas prices can shave its earnings by nearly $2 billion.
Will XOM Stock Price Head Toward $108.75?
The stock price traded lingering around the 20,50,100 and 200-day EMAs since the consolidation started. The EMAs have been moving sideways. Chaikin money flow score has crossed below the 0 mark and is struggling to rise above since June suggesting weakness in the market.
RSI trades at 41 .94 suggesting rising bearish momentum in the price. Exxon mobil stock price has reached the lower band of bollinger and is headed toward upper band which resides near the resistance level of $108.75.
Conclusion
Technical parameters suggest that there is a rise in the participation of bears in the market as the recent news floated regarding less earnings. The market structure and price action of Exxon Mobil Corporation are indecisive as the price is in a consolidation zone. The longer the price consolidates, more intense would be the breakout.
Technical levels
Major support: $101.50 and $98
Major resistance: $108.75 and $120
Disclaimer
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Source: https://www.thecoinrepublic.com/2023/07/09/exxon-mobil-corp-xom-stock-price-consolidates-above-100/