Exxon Close to Support?

Published on Wednesday, 08 February 2012 06:52 Written by TradersHuddle Wire

New York, February 8th (TradersHuddle.com) - Shares of Exxon Mobil Corp. (NYSE:XOM) finished near calculated support at $83.19.

Current price action with, the biggest U.S. energy producer closed at $86.34 has left shares at a level that needs to be monitored closely by traders wanting to start or add into a position in the stock.

Exxon's current stock range is defined by current calculated support defined at $83.19 and by the resistance level at $86.21.

The area defined as calculated support, is where we expect for buyers to likely materialize, which could provide a lift to the shares. However, this area if breached will signal participants that the stock failed to entice buyers to step in an support the stock.

Traders wanting to establish a position should pay close attention to Exxon's price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $86.21 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.