Keep an eye on oversold oil. At $69.49, crude is sitting at support dating back to late 2021. It’s also oversold on RSI, MACD, and Williams’ %R. And we expect to see oil come back strong – especially with summer driving season just around the corner. “Fears surrounding the banking sector witnessed the price of oil spiral south over the course of last week, shedding more than 13.0%, its largest one-week decline in months,” said FX Street.
With a good amount of fear now priced in, stocks like Exxon Mobil (XOM) could gush higher again. XOM is also oversold, pivoting from oversold RSI, MACD, and Williams’ %R. Helping, Mizuho analysts recently raised their price target on XOM to $147 from $140. Wells Fargo also raised its target to $133 from $125 a share. According to Wells Fargo, as quoted by TheFly.com: Wells Fargo raised the firm’s price target on Exxon Mobil to $133 from $125 and keeps an Overweight rating on the shares. The analyst shifted the model to 2025 and says the outlook remains positive based on attractive shareholder returns, modest volume growth and “restrained” capex increases. Wells sees a favorable cash flow trajectory through 2025 for Exxon.