Benzinga
Published Aug 24, 2022 17:40
Updated Aug 24, 2022 18:40
Here's Why Exxon Mobil Could Be Headed Back To All-Time Highs
Exxon Mobil Corporation (NYSE: NYSE:XOM) was trading flat on Wednesday after a big bullish day on Tuesday saw the stock gap up 1.53% and rally an additional 2.56% intraday.
The energy sector turned bullish on Aug. 5 after trading sideways since mid-June.
Despite the S&P 500 hitting a top on Aug. 16, Exxon has continued to surge higher since that date within a uptrend pattern.
An uptrend occurs when a stock consistently makes a series of higher highs and higher lows on the chart. The higher highs indicate the bulls are in control while the intermittent higher lows indicate consolidation periods.
Traders can use moving averages to help identify an uptrend, with rising lower time frame moving averages (such as the eight-day or 21-day exponential moving averages) indicating the stock is in a steep shorter-term uptrend.
Rising longer-term moving averages (such as the 200-day simple moving average) indicate a long-term uptrend.
A stock often signals when the higher high is in by printing a reversal candlestick such as a doji, bearish engulfing or hanging man candlestick. Likewise, the higher low could be signaled when a doji, morning star or hammer candlestick is printed. Moreover, the higher highs and higher lows often take place at resistance and support levels.
In an uptrend the "trend is your friend" until it’s not and in an uptrend there are ways for both bullish and bearish traders to participate in the stock:
The Exxon Chart: The most recent higher low within Exxon’s uptrend was printed on Aug. 22 and $91.86 and the most recent confirmed higher high was formed at the $95.31 level on Aug. 18. On Tuesday and Wednesday, Exxon surged up above the Aug. 18 high-of-day but the stock hasn’t printed a reversal candlestick to indicate a retracement to the downside is imminent.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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