Exxon Is Near Important Moving Averages

Published on Friday, 06 July 2012 07:12 Written by TradersHuddle Wire

New York, July 6th (TradersHuddle.com) - Shares of Exxon Mobil Corp. (NYSE:XOM) closed the session at $85.57, near the 50 day and 200 day moving averages currently set at $82.78 and $82.21 respectively. Exxon's price action is above these important levels, which could materialize into a trading opportunity.

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.

Although, the price action is above these moving averages, it's important to highlight that the 50 day moving average is currently above the 200 day moving average. This signals that the stock is not technically broken from the long side and buying the dip strategy might be the best setup to follow.

The peaks and troughs algorithm show calculated support at $79.78 and calculated resistance at $86.28. These levels should also be evaluated by traders when planning their next move, as they provide an insight into the latest price action.

If traders want to establish a position on ".$shcompname." they need to do it as close to the moving averages as possible. Also, they need to consider the latest range defined by the peaks and troughs algorithm, not forgetting that if the stock had a wild move outside its range, it could take a few days for it to establish fresh support and resistance levels.