On June 4, we noted, “Keep an eye on oversold oil stocks, like Exxon Mobil (XOM). For one, XOM is technically oversold at strong support dating back to early April. It’s also slowly pivoting from over-extensions on RSI, MACD, Money Flow and on Full Stochastics. Two, oil prices are starting to gush higher — especially with an intensifying war with Russia and Ukraine.” At the time, XOM traded at about $103. Today, it’s up to $107.40 and could gush higher.
In fact, if XOM can break above resistance at around $109.43, it could retest $112. Fueling upside in oil, there’s optimism with ongoing US-China trade talks. If a deal can be reached, there’s hope it will boost the global economic outlook and fuel demand. And, according to Bank of America, oil could push higher on short covering. “Much of this advance appears technically driven and such rallies can easily subside without new bullish headlines,” analysts at energy advisory firm Ritterbusch and Associates said, as quoted by Reuters. “Much attention will be given to the ongoing U.S.-China trade talks.” In short, there’s good reason to stay bullish on the Exxon stock.
Sincerely,
Ian Cooper
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