Playing the Setup in Exxon
Published on Thursday, 07 June 2012 06:48 Written by TradersHuddle Wire
New York, June 7th (TradersHuddle.com) - Exxon Mobil Corp. (NYSE:XOM) closed the the trading session at $80.18, near its 50 day and 200 day moving averages currently set at $83.63 and $81.20 respectively. Exxon's price action places the stock below these important levels, which makes it difficult to be bought, as it will certainly face resistance as it approaches these important moving averages.
Exxon Mobil Corporation (NYSE:XOM) operates petroleum and petrochemicals businesses globally. The Company's operations include exploration and production of oil and gas, electric power generation, and coal and minerals operations. Exxon Mobil also manufactures and markets fuels, lubricants, and chemicals. The biggest U.S. energy producer was founded in 1870 and is based in Irving, TX.
The latest price action range, defined by a peaks and troughs algorithm, placed calculated support at $77.13 and resistance at $86.05. Traders should monitor these levels, as they provide insight into the latest price dynamics in Exxon.
If traders want to establish a position on Exxon, given the heavy resistance expected near the 50 and 200 day moving averages, a trade might be evident as the stock manages to break these moving averages. However, until the break materializes buying the stock is nothing different than flipping a coin.