Close to Key Levels: Exxon
Published on Tuesday, 12 February 2013 07:36 Written by TradersHuddle Wire
New York, February 12th (TradersHuddle.com) - Exxon Mobil Corp. (NYSE:XOM) closed the trading day at $88.28, near its 50 day and 200 day moving averages set at $88.91 and $87.32 respectively. Exxon's price action placed the stock above the 200 day moving average but below its 50 day moving average, a setup that signals a possible break out.
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.
Exxon seems to be setting up for a tight range between the 200 day moving average as support and the 50 day moving average serving as resistance.
A tiered approach, appears to be the best strategy to maximize possible movements in the stock, as traders could establish a small position in Exxon and wait for the stock to break out above its 50 day moving average at $88.91. Then they could add to the position as momentum builds with the breakout. On the flip side, if support being referenced at the 200 day moving average set at $87.32 breaks, it could signal further downside pressure for Exxon.