ExxonMobil Is Holding Gains As Crude Oil Rallies. Here’s How To Trade The Stock.
ExxonMobil (XOM) broke out above its 50-day simple moving average as 2022 began. This happened after the stock was below its 200-day simple moving average on December 20, 2021. The December low was $57.96, and the rally high was $105.57 on June 8, 2022.
Nymex Crude Oil traded as low as $62.43 per barrel on December 2, 2021 and as high as $130.50 on March 7, 2020. It’s been in a trading range since then with the low end at $93.53 set on March 15, 2022. Oil has been trading around its 50-day SMA since April 1 with the average now at $110.23. Exxon’s 50-day SMA is $91.40 with Tuesday’s close at $91.50.
Exxon has a p/e ratio of 13.09% with a dividend yield on 3.95%, according to Macrotrends. As on June 27 the dividend payout was $3.52. The oil giant had beaten earnings-per-share estimates in six consecutive quarters but missed slightly when they reported before the open on April 29.
The Daily Chart for ExxonMobil
The daily chart for Exxon shows that stock traded around its 200-day simple moving average between August 19, 2021 and December 21.
The stock moved above the 200-day SMA on December 21 and closed above its 50-day SMA on January 3, 2022. It followed the 50-day SMA high between March 16 and June 28, which was Tuesday when the 50-day was $91.40.
The upper horizontal line is this month’s risky level at $96.67. The lower horizontal line is the quarterly value level at $78.56. The 200-day SMA is $75.15.
The Weekly Chart for ExxonMobil
The weekly chart for Exxon ended last week negative with the stock below its five-week modified moving average at $90.88. The stock is just above this average today at $91.50 at Tuesday’s close. The stock is well above its 200-week simple moving average, or ‘reversion to the mean’ at $63.79.
The 12x3x3 weekly slow stochastic reading is declining at 57.80. This measure scales between 00.00 and 100.00 where readings above 80.00 are overbought and readings below 20.00 are oversold. At the high during the week of June 10 this reading was above 90 making the stock extremely overbought.
Trading Strategy: Buy Exxon on weakness to its quarterly value level at $78.56. Reduce holdings on strength to its monthly pivot for June at $96.67.