Trading Idea: What to Expect as Exxon Breaks Resistance
Published on Monday, 21 January 2013 07:24 Written by TradersHuddle Wire
New York, January 21st (TradersHuddle.com) - Shares of Exxon Mobil Corp. (NYSE:XOM) closed the session at $90.20 just above calculated resistance at $89.09. The stock moved to what appears to be a higher range, spurring attention from momentum buyers.
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 stock was trading in a well defined range with support at $84.70 and resistance at $89.09. Given that this range was broken, traders will be closely monitoring Exxon's price action to gather clues on the future direction.
From a technical perspective, it can be expected that previous resistance becomes support, as the new range gets defined. However, given that Exxon is still near the broken resistance level, traders will be focusing on the $89.09 level to see if the stock holds the breakout without rolling over.